Bitcoin ETF vs Future

in mgst •  7 years ago 

Do you know the difference between Bitcoin Futures & proposed Bitcoin ETF?

#Bitcoin ETF vs Futures

  • Futures is a synthetic product not backed by physical $BTC

  • ETF is backed by physical $BTC, that means the Fund needs to buy real bitcoin & store as underlying asset

  • ETF approval brings regulatory legitimacy to #crypto from SEC

📌 ETF opens up whole new investor class that can not invest in #crypto currently due to uncertain regulatory environment. This includes pension funds, sovereign funds, onshore hedge funds, special situation funds & non accredited investors

  • While You can short $BTC Futures, $BTC ETF you can only LONG.

  • For physical #bitcoin based ETF, Equivalent amount of underlying #BTC must be acquired from open market & stored.

That was brief summary of ETF Vs Futures. Hope you liked it!

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