BTC Futures VS BTC ETF

Do you know the difference between #Bitcoin Futures & proposed #Bitcoin ETF?

Some are confused as to why $BTC will jump 100% & probably reach 25500 target within days if & when SEC approves ETF. All technical levels will go for a toss!

#Bitcoin ETF vs Futures

• Futures is a synthetic product not backed by physical $BTC

• ETF is backed by physical $BTC, that means the Fund needs to buy real bitcoin & store as underlying asset

• ETF approval brings regulatory legitimacy to #crypto from SEC

ETF opens up whole new investor class that can not invest in #crypto currently due to uncertain regulatory environment. This includes pension funds, sovereign funds, onshore hedge funds, special situation funds & non accredited investors

• While You can short $BTC Futures, $BTC ETF you can only LONG.

• For physical #bitcoin based ETF, Equivalent amount of underlying #BTC must be acquired from open market & stored.

That was brief summary of ETF Vs Futures. Hope you liked it!