Skip to main content
Learn

What Is the Potential Tracking Error Risk in a Bitcoin Futures ETF?

Tracking error in a futures ETF is mainly due to 'contango,' where the cost of rolling contracts erodes returns over time.
Greeks.Live03.11.25

What Is the Potential Tracking Error Risk in a Bitcoin Futures ETF?

The primary tracking error risk is due to 'contango,' where the price of the futures contracts held by the ETF is higher than the current spot price. As the ETF sells expiring contracts and buys new, more expensive ones, this "roll cost" can erode returns, causing the ETF's performance to lag the actual spot price of Bitcoin over time.

How Does the Custody of Bitcoin Differ between a Spot ETF and a Futures ETF?
How Does the Expense Ratio of an ETF Impact an Investor’s Long-Term Returns?
What Market Factors Typically Lead to a State of Contango?
How Does the Custody Requirement for a Spot Bitcoin ETF Differ from a Futures ETF?

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.