A Bitcoin ETF is an exchange-traded fund that tracks the performance of Bitcoin with futures contracts, which are derivative investment securities that allow investors to speculate on the future price of an underlying asset. A Bitcoin futures ETF is like a mutual fund, but the intent is to track Bitcoins price and create a security that can trade on an exchange. Bitcoin futures ETFs are pools of Bitcoin-related assets offered on traditional exchanges by brokerages to be traded as ETFs. The intent behind these ETFs is to provide investors with exposure to Bitcoin without having to purchase the cryptocurrency directly.

A Bitcoin futures ETF is managed by a firm and listed on a traditional stock exchange. The first official Bitcoin-linked ETF was the Proshares Bitcoin Strategy ETF (BITO), approved by the SEC in October 2021 and listed on the New York Stock Exchange. Other ETFs that track Bitcoin futures have hit the market since, including VanEck Bitcoin Strategy ETF (XBTF) and Simplify Bitcoin Strategy Plus ETF (MAXI) .

Investing in a Bitcoin ETF could be a good option for people who are looking for a more traditional way of investing in the digital currency. Investing directly in Bitcoin can be complicated and involves questions of how the asset will be stored and secured. A Bitcoin ETF allows investors to gain exposure to Bitcoin without having to worry about these issues.