Crypto ETFs
Bitcoin futures ETFs, spot Bitcoin and ether ETFs, and how ETF flows meet the price.
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Lessons
- 01What is a Bitcoin futures ETF?A Bitcoin futures ETF is a fund listed on a stock exchange that tracks Bitcoin by holding Bitcoin futures contracts, plus cash as collateral. It owns no bitcoin. Because futures expire, the fund keeps replacing them, and when later contracts cost more, that roll makes the fund lag the Bitcoin price over time.
- 02What is a spot Bitcoin ETF?A spot Bitcoin ETF is a fund that owns actual bitcoin, kept by a custodian, and whose shares trade on a stock exchange. Each share stands for a fixed slice of the fund's coins, minus fees. Large trading firms create and redeem shares to keep the share price close to the value of that bitcoin.
- 03What is a spot ether ETF?A spot ether ETF is a fund that holds ether (ETH), the coin of the Ethereum network, with a custodian, and whose shares trade on a stock exchange. It works like a spot Bitcoin ETF. The main difference is staking: some funds lock part of their ether to earn network rewards, and others do not.
- 04How do ETF flows move the Bitcoin price?When investors put more money into spot Bitcoin ETFs than they take out, new shares are created and bitcoin is bought to back them. Outflows work in reverse. That buying and selling can move the price, but hedged trades, other sellers and timing mean a flow figure never maps neatly onto a price change.