4 questions to know about Bitcoin Futures ETFs and Spot ETFs

October 19 at 9:30 a.m. EST;The first US Bitcoin futures ETF “ProShares Bitcoin Strategy” (chemical code: BITO) is listed on the New York Stock Exchange.Vito wins the lottery on the first day of registration. Based on the closing price of the US stock market, the price of the BITO Bitcoin Futures ETF would have increased 4.85% to $ 41.94 from the market price of $ 40.

The ETF announcement is an important step in the implementation of Bitcoin in the United States.It also means that existing investment firms and investors can buy Bitcoin ETFs directly through exchanges.

The long-awaited ETF is not only a Wall Street investor, but also a cryptocurrency community.

For years, many people have always believed that Bitcoin-based ETFs are unreliable and must be launched a long time ago.

Previously, the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler (Gary Gensler), said that ProShares are compliant with Bitcoin futures and are shipped under a common denominator. .This policy provides for "significant client protection".

Simeon Hyman, Global Marketing Director of ProShares, said:

"We are very pleased to provide the first Bitcoin Linked ETF which will give investors who rarely have the opportunity to invest in Bitcoin through a brokerage account. Your Wallet."

Now, other next-generation Bitcoin-based exchanges are waiting for applications.

Valkyrie's Bitcoin Strategy ETF will be announced on Wednesday, codenamed BTFD. At the same time, Grayscale Investments and the New York Stock Exchange have requested the conversion of the world's largest Bitcoin investment (market code GBTC) into an ETF.

Differences between spot ETFs and futures ETFs

What is the difference between a broken Bitcoin future ETF and an ETF site that has been used multiple times?

Instead of tracking asset values, futures ETFs track futures contracts on the CME-listed futures market. Therefore, the value of ProShares ETF differs from that of Bitcoin.

In the case of an ETF, its value closely follows the value of the asset.Therefore, the Bitcoin Spot ETF should eliminate the pricing and price tracking issues associated with futures contracts.

Futures ETFs carry contract prices, but ETFs do not.

However, local ETFs must pay an agent to manage their Bitcoin securities. This is actually a unique feature of Bitcoin.

Whether it's a futures ETF or an ETF site, it can help the market drive demand for Bitcoin.

In the case of an ETF site, the lowest asset is the actual purchase of Bitcoin. In the case of futures ETFs, most traders buy physical Bitcoin as a hedging position.

The launch of the first Bitcoin Futures ETF has sparked controversy over the potential impact of the cryptocurrency market. People are wondering how ETFs with direct exposure to Bitcoin can change this pattern.

Many believe that the Bitcoin Spot ETF will be a bigger step in the market. This may be true, howeverBitcoin futures ETFs could support the expansion of cryptocurrencies and increase the demand for future profits in the market, which will benefit the market..

How to manage Bitcoin Futures ETFs?

This week, the crypto industry took a major step towards adoption. The first Bitcoin-based ETF launched by ProShares in the United States has been listed on the New York Stock Exchange, and a few other funds are expected to receive similar products later this month.

The crypto community is welcoming the SEC's decision to approve the Bitcoin Futures ETF, but there are still those who question the organization's reluctance to endorse the Bitcoin Spot ETF.The SEC has rejected several requests since 2013, but there is no indication that it intends to change its position.The obvious differences between futures ETFs and physical ETFs may explain this decision.

ETFs are actually regulated by the Securities and Exchange Act of 1933, which requires an amendment to Form 19b-4 to indicate that the underlying industry has not been regulated. On the other hand, futures exchanges are subject to the Economic and Commercial Law of 1940 and do not require the same format.

The cryptocurrency market is essentially unregulated by the government, while monitoring the futures market provides investors with some realism.For the ProShares Bitcoin futures contract, Commodity Futures Trading sets the rules.

Why does the SEC support so many Bitcoin Futures ETFs?

The SEC has approved a BTC exchange rate based on futures contracts, howeverLocation Based BTC Exchange Rates Disclaimer. In this way, regulators have attracted a lot of attention.

Many believe the SEC decided this.This may be due to the belief that future markets can better protect investors.

ETFs based on futures contracts are essential to managing 'the money'. The company provides the currency to trade Bitcoin in the future and its success will depend on its de facto performance in the market.

Currently, Bitcoin Futures ETFs are required to register with only long-term income.This means that the company behind this ETF can only hold long positions in Bitcoin and not short positions.

Other companies have attempted to reverse Bitcoin futures ETFs (for short positions), but were not approved by the SEC this time around.

In the case of the SEC, the Bitcoin market often takes place on platforms that are not controlled by the US government.

Sister tabBitcoin futures transactions are conducted by the SEC, regulated by the Chicago Mercantile Exchange, to ensure safety, security, and security.

Will Bitcoin ETFs be approved in the future?

Will Bitcoin ETFs Finally Be Approved?

answer this questionIt differs from the SEC. of course thatIt also depends on the future performance of the Bitcoin Futures ETF.

Sister tabAt least so far, the SEC has seen no sign of approving a BTC exchange rate.So for the crypto community, we can only wait now.

HR measurementsA company that provides trading data for CME Bitcoin Futures and Proshares BTC ETF.PDG Jeong SooExpress:--The introduction of Bitcoin futures ETFs will not affect the adoption of ETFs.

At the same time, if the future ETFs perform well and reach a small size,Traders who request Bitcoin can meet ETF requirements., then the SEC can say that the request was satisfied for this reason and may not approve the ETF.

Jung pointed out that the success or failure of Bitcoin futures ETFs depends on large companies like Charles Schwab and TD Ameritrade offering ETFs to their clients.

If these installations do not give access to all users, but only allow “certain users”, it may affect the performance of the BTC Futures ETF.

Then there will be time for ETFs.