Most crypto analysts agree that bitcoin ETFs will be a game changer in this industry. The popularity of cryptocurrency has been surging, and bitcoin in particular has become the most preferred cryptocurrency for investors and users. In addition to directly buying the bitcoin currency, now investors also have the option of investing in bitcoin-linked ETFs. These ETFs work in the same way as gold, oil and stock ETFs. They are traded on exchanges similar to stock trading.
Crypto analysts have always been bullish about BTC ETFs. Now two futures based bitcoin ETFs are available for trading. Many other companies are rushing to launch new ones. Valkyrie and Direxion plan to do so to allow speculators short the BTC price. Investments in these financial instruments will bring more money into the BTC industry. These ETFs will change the cryptocurrency market structure. They will open opportunities in tertiary derivatives like CME futures, spot access and future based ETFs.
BITO (ProShares Bitcoin Strategy ETF) is the first bitcoin-linked ETF in the US. It allows investors to gain bitcoin exposure in a convenient, transparent and liquid way. The fund plans to deliver capital appreciation mainly through bitcoin futures contract exposure.
A BTC ETF will not invest in bitcoin directly. This type of ETF allows the investor to purchase bitcoin indirectly. Rather than buy this digital currency, investors will hold it through the BTC ETFs. The investors must expect the price and performance of these ETFs different from prevailing bitcoin spot price.