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Author: Admin | 2025-04-28
Big deal.Bitcoin ETFs: TypesWhile all the celebration in the crypto industry is regarding the spot Bitcoin ETF, that is not the only type of Bitcoin ETF we have in the market. In reality, we already had a Bitcoin futures ETF before the spot Bitcoin ETF got approved. And for any investor, it is worth knowing the difference between the two to understand why the latter was so highly coveted.Bitcoin futures ETF offers investors exposure to bitcoin futures contracts. Now, these contracts are legally binding agreements that allow their holders to buy or sell an asset at some point in the future. By investing in a Bitcoin futures ETF, the investor doesn’t possess the asset but can benefit from its price movements. And considering the fact that Bitcoin is known to be rather volatile, Bitcoin futures ETFs can potentially be very profitable. But just like the actual price movement of Bitcoin, these ETFs can also lose their value suddenly.Spot Bitcoin ETF: A spot Bitcoin ETF differs from the futures ETFs in that it is based on the price of Bitcoin at any given time and does not give the investor the right to sell at a future date. These investment funds track the ‘spot’ price of Bitcoin and derive its value based on this. The fortunes of the ETF will reflect the state of the Bitcoin market at any given time and are seen to give more direct access to the asset than Bitcoin futures ETFs.Investing In Bitcoin ETFsIf you decide
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