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!
