WHAT
#BITCOIN #ETF?? So, a bitcoin futures ETF is an exchange-traded fund that holds bitcoin futures contracts and sells shares of the fund to investors. These shares are bought and sold on a mainstream exchange. These ETFs are created by purchasing futures contracts from the
#CME Group and bundling them into a fund.
KEY TAKEAWAYS
Bitcoin futures ETFs are exchange-traded funds that aim to offer exposure to the price movements of bitcoin.
The ETFs use futures contracts to achieve this goal.
Fund managers purchase these contracts and bundle them into a fund.
These funds gained popularity when first introduced, in part because the SEC initially blocked ETFs that directly held Bitcoin before approving them in 2024.
Bitcoin Futures ETF History
The first concept for an ETF that held bitcoin (not bitcoin futures) emerged shortly after investors and brokers noticed that Bitcoin prices were trending upward and gaining popularity amongst investors. This signaled an opportunity to generate returns by trading bitcoin.
As Bitcoin's price rose to tens of thousands of dollars, retail and average investors lost the opportunity to invest directly in Bitcoin. Brokerages, responding to demand for investor access to Bitcoin, began to design Bitcoin exchange-traded funds.
$BTC $SOL