Spot Bitcoin ETFs Pose A Major Threat to The Futures ETFs
However, some are already seeing the spot ETF products as threats to the existing Bitcoin futures ETFs already available in the market. At present, the most accessible route for US fund investors to engage with cryptocurrency is by investing in products that follow Bitcoin futures contracts. These funds made a significant splash when they were introduced in October 2021, setting records. advertisement However, they struggled to maintain that initial excitement, and their collective market value has since stabilized at around $1 billion. Analysts suggest that the introduction of spot-based funds would more accurately track the coin’s price and potentially at a lower cost. The spot product could challenge the existing Bitcoin futures ETFs in the market. James Seyffart, an analyst at Bloomberg Intelligence said: “We would expect the assets and volume to coalesce around one or multiple spot- Bitcoin ETFs because they are superior products for most types of inves...
