Bitcoin futures ETFs provide users with the ability to bet on the price of bitcoin, allowing them to agree to buy or sell bitcoin at a specific price on a specific date.
A Bitcoin futures ETF is an agreement to buy or sell Bitcoin at a specific price on a predetermined date. For example, when buying bitcoin through the ProShares Bitcoin Strategy ETF, an investor can contract with ProShares to buy $10,000 in bitcoin on June 15, regardless of the actual value of the bitcoin that day.
Given the volatility of BTC, why would people choose to buy Bitcoin someday in the future? Because they have reason to believe that the price of bitcoin will be lower by then, and the whole process is done by the platform, not the user. Additionally, traders can short the asset and create sell contracts.
Of course, one can buy any amount of Bitcoin at any time without ProShares, but futures ETFs ensure that users can invest in the digital asset without inconveniencing themselves through exchanges. This method also has lower fees compared to most cryptocurrency exchanges. However, futures ETFs do not involve investing in Bitcoin at spot prices, which is why some enthusiasts may argue that this does not provide “real” crypto currency adoption.
Additionally, companies offering bitcoin futures ETFs may charge annual fees to keep contracts and accounts open. Also, these ETFs may sometimes fail to accurately track the price of Bitcoin. These questions make many people want to choose another ETF to invest in.