Futures vs. Spot - not all Bitcoin ETFs are created equal. Learn the critical differences in our comprehensive guide.
Flexible traders who prefer diversifying their portfolios at a lower cost and tax benefits often invest in ETFs. But, what is an ETF? ETF refers to the exchange-traded funds that are a collection of assets whose shares are traded on a stock market. They blend the characteristics and potential benefits of mutual funds, stocks and bonds.
If Bitcoin's value rises, so does the ETF's, and vice versa. However, the ETF would trade on a stock exchange like the NYSE. ETFs are now accessible for various assets and industries, including commodities and currencies. The Bitcoin futures ETF structure has been criticized because holding BTC futures to price instead of spot Bitcoin can lead to underperformance. Another reason traders dislike futures is that they often trade at a higher price than the underlying asset, although they can also trade at a lower price.
On the other hand, a “discount” occurs when the spot price is higher than the futures price. Backwardation is the term used in the commodity derivative market, while discount is used in the equity derivative market. The situation is regarded as normal when the futures price converges with the current price.
Bitcoin futures ETFs are preferred over spot ETFs because the Commodity Futures Trading Commission regulates the futures market and has enormous trading volumes, which can be a prominent place for price discovery.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Bitcoin, Ethereum Technical Analysis: BTC Consolidates on Monday, After Recovering Recent Losses – Bitcoin NewsBitcoin recovered recent losses over the weekend, setting the stage for a potential rally this coming week.
Consulte Mais informação »
Aptos (APT) Explodes 20% Weekly, Bitcoin (BTC) Stalls at $26.5K (Weekend Watch)Aptos the among the best performers on both a weekly and daily scale in the top 100 crypto assets.
Consulte Mais informação »
Bitcoin (BTC) Price Analysis for June 18Can bulls hold the gained initiative and keep the rate of BTC above $26,000? NickSzabo4 alistairmilne Maybemore_DC WhalePanda maxkeiser Rager BTChasrate BTCmining
Consulte Mais informação »
Bitcoin Dominance Soars to 2-Year High as BTC Maintains $26K (Market Watch)XRP and DOGE are among the few larger-cap altcoins with insignificant gains on a daily scale.
Consulte Mais informação »
Bitcoin Liquidity Drying up, Here's How This Might Impact BTC Price.glassnode Bitcoin (BTC) liquidity drops to cycle lows, what this means for price BTC $BTC
Consulte Mais informação »
Binance’s Bitcoin Button Game Is Back: Your New Chance to Win 1 BTC | Binance BlogUsed up your chance to click the BitcoinButton? Worry no more, this year we're giving you even more attempts to win that 1 Bitcoin prize. Complete puzzles and tasks to earn them, as simple as that. More info here ➡️
Consulte Mais informação »