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How Does the Custody of Bitcoin Differ between a Spot ETF and a Futures ETF?

Spot ETF requires physical custody (cold storage) of Bitcoin; futures ETF holds cash-settled contracts, avoiding custody.
Greeks.Live04.11.25

How Does the Custody of Bitcoin Differ between a Spot ETF and a Futures ETF?

A spot Bitcoin ETF requires the fund manager to take physical custody of the actual Bitcoin, necessitating secure, institutional-grade cold storage solutions. A Bitcoin futures ETF does not hold any actual Bitcoin; instead, it holds cash-settled futures contracts, meaning there is no need for direct custody of the underlying cryptocurrency.

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What Is ‘Arbitrage’ between the Futures Price and the Spot Price?

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