Bitcoin and crypto ETFs

Spot and futures-based funds holding digital assets — convenience with distinct risks.

Spot bitcoin ETFs hold actual bitcoin with a custodian and track its price directly; futures-based crypto funds hold exchange-traded futures contracts instead, which adds roll costs and tracking differences. The spot structure, approved in the U.S. in 2024, removed the need for investors to manage wallets and keys.

These funds inherit crypto's underlying volatility — drawdowns far deeper than equity markets are historical fact — plus fund-specific considerations: custody arrangements, fee levels that vary widely, and reference-price methodology.

The convenience is real (brokerage access, IRAs, no key management), but the wrapper does not change the asset. Position sizing and the issuer's risk disclosures matter more here than in most categories.