Skip to main content
Learn

How Does the Custody Requirement for a Spot Bitcoin ETF Differ from a Futures ETF?

Spot ETF requires secure, regulated physical Bitcoin custody. Futures ETF holds cash/Treasury bills as collateral for centrally cleared futures, minimizing digital asset custody risk.
Greeks.Live08.11.25

How Does the Custody Requirement for a Spot Bitcoin ETF Differ from a Futures ETF?

A spot Bitcoin ETF requires the physical custody of the underlying Bitcoin, necessitating the use of highly secure, regulated, and often cold-storage-focused digital asset custodians. A futures Bitcoin ETF does not hold physical Bitcoin; its assets are typically cash and short-term Treasury bills held as collateral for the futures contracts, which are centrally cleared.

This significantly reduces the digital asset custody risk.

Can a Trader Use Other Assets as Collateral to Meet a Margin Call?
What Is the Primary Difference between OTC and Exchange-Traded Derivatives?
How Does a Clearing House Handle Settlement for Physically-Delivered Vs. Cash-Settled Futures?
What Are the Risks of Using Bilateral (Non-Cleared) Derivatives Compared to Centrally Cleared Ones?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.