In this case, the fund tracks the price of Bitcoin futures traded on the Chicago Mercantile Exchange, not the Bitcoin itself. Bitcoin surged as supporters claimed that the launch of Bitcoin ETFs would increase the legitimacy of cryptocurrencies. Therefore, the industry expects all funds to eventually become plain vanilla Bitcoin futures ETFs. They argue that investors in Bitcoin futures ETFs can suffer from substandard performance as cryptocurrencies continue to rise. Bitcoin has skyrocketed recently, and fans claim that the launch of Bitcoin ETFs will increase the legitimacy of cryptocurrencies and make them more exposed to institutional investors.

Source: Wall Street Journal October 29, 2021 22:01 UTC