Bitcoin Futures vs. Bitcoin Exchange Traded Funds (ETFs)

The difference between Bitcoin Futures vs. Bitcoin Exchange Traded Funds (ETFs)?

Many people don’t understnd why Bitcoin has the potential to increase astronomically and can potentially reach $25,000, for example within days “IF and WHEN” the Security Exchange Commission (SEC) approves Bitcoin Exchange Traded Funds (ETFs).

Throw out your technical analysis!

Bitcoin Futures vs. Bitcoin Exchange Traded Funds (ETFs)

  • Bitcoin Futures is basically gambling on air since it is not backed by physical Bitcoins
  • Bitcoin Exchange Traded Funds (ETFs) are backed by physical Bitcoins. This means that the ETF needs to buy BTC and hodl it as the underlying asset for the funds
  • For the mainstream investors, SEC’s ETF approval brings regulatory legitimacy to cryptocurrency regardless of your opinion about regulations and government intervention

Bitcoin Exchange Traded Funds will enable a whole new investor class to participate in cryptocurrency. They are reluctant because they are conservative high net worth individuals (HNWI) and institutional investors who are on the fence because of cryptocurrency’s uncertain regulatory environment. This includes pension funds, sovereign funds, hedge funds, etc.

  • You can short $BTC Futures as many do
  • With BTC ETFs, you can only go LONG — bet on the future increase of the underlying asset, i.e. bitcoin
  • With Bitcoin Exchange Traded Funds (ETFs), the equivalent amount of Bitcoin must be purchased on the open market

Huobi, the Singapore-headquartered cryptocurrency exchange, has decided to create its own ETF style instrument based on its recently launched index of ten digital assets.

Trident launched its own Cryptocurrency Index Fund which consists of the top most profitable cryptocurrencies.

VanEck and SolidX Join Forces to Bring to Market Physically-Backed Bitcoin ETF – An Agreement brings together two leaders in the digital assets space. VanEck was first to file for a 40-Act Bitcoin ETF; SolidX among the first for a physically-backed bitcoin ETF. Now they wiell be working directly with the SEC to try to get the Bitcoin Exchange Traded Funds (ETFs) going.

Jan van Eck, CEO of VanEck said:

I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios

And there are many more. BUT… what is missing is the buy-in and approval by the USA Securities Exchange Commission.

What do you think about Bitcoin Futures vs. Bitcoin Exchange Traded Funds (ETFs)?

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Faith Sloan “QueenWiki” 
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Queen Wiki

Faith Sloan better known as "Queen Wiki" or "Crypto Queen" is a cryptocurrency enthusiast and trader. She has been a software engineer for 40 years and builds Decentralized Apps (DApps) on the Ethereum blockchain and plays with Tech toys. When she is not teaching, researching and writing about Cryptocurrencies, she's traveling the world and feeding her eating hobby.