Traders flocked to these instruments to speculate on Bitcoin’s price volatility, and the fund became one of the fastest ever to hit $1 billion in assets under management.
However, futures-based ETFs have a quirk called “contango,” where futures prices tend to exceed the current (spot) prices. Over time, this mismatch can erode returns.
Spot ETFs avoid this issue, as they directly track Bitcoin’s actual price, making options on them a more straightforward and potentially reliable trading tool.