The BTF ETF is managed mainly through Bitcoin and Ether futures contracts and is designed to provide indirect exposure to changes in digital asset prices. Its defining feature is a futures-based structure that does not hold the underlying crypto assets directly.

Instead of holding crypto assets directly, it lets investors consider futures-based exposure within an exchange-traded fund account, which suits investors who can tolerate large price swings.

It is an ETF with an active management approach, run by CoinShares Asset Management.

The BTF ETF uses Bitcoin and Ether futures contracts, and it manages its remaining assets in cash equivalents or high-quality securities to meet collateral and liquidity needs. Changes in futures prices and the conditions around contract rollovers can affect performance.

• Uses Bitcoin and Ether futures contracts together
• Uses cash equivalents and high-quality securities for collateral and liquidity management

Assets under management (AUM) stand at $16.0M, and the total expense ratio (Expense Ratio) is 1.27% per year.

In futures-based products, spot prices and futures prices can move differently. Rather than judging performance solely on price changes in the underlying crypto assets, investors should also check rollover costs, collateral management, and trading conditions.

The price trend of the BTF ETF is influenced by market sentiment toward Bitcoin and Ether, the futures curve, and liquidity conditions. Digital assets can see sharper price swings than traditional assets, so the fund can move sharply in both rising and falling phases.

Fund flows can vary with demand for access to digital assets, the regulatory environment, interest rates and liquidity conditions, and market risk appetite. In a futures-based structure, rollover costs and the yield environment for collateral assets can also affect net asset flows and the performance investors actually experience.

The structure is distinctive for providing access to futures on two digital assets together, but the gap between futures and spot prices and high price volatility are the key risks.

The IBIT ETF and FBTC ETF shown in the table can serve as benchmarks for comparing Bitcoin-focused exposure, while the GBTC ETF can be viewed as a product to check for its fee burden and product structure. The ETHA ETF is a comparison point for Ether-focused exposure, and the BTC ETF is one for investors looking at Bitcoin exposure. Because the BTF ETF handles both crypto asset futures contracts together, investors should check how its exposure method and futures structure differ from single-asset products.

When considering the CoinShares Bitcoin and Ether ETF, investors should distinguish between products that hold assets directly and futures-based products, and should review their investment horizon and loss tolerance for handling price swings. Whether the fund pays quarterly distributions is a separate item to check apart from the total return structure.

Bitcoin and Ether prices can move quickly with changes in market sentiment and liquidity, and futures contract prices can form differently from spot prices. Factors such as collateral requirements, rollover costs, and position limits can further affect the BTF ETF's performance and trading conditions.

The BTF ETF is an actively managed product for investors who want to access Bitcoin and Ether through futures contracts rather than direct ownership. Compared with products centered on a single crypto asset, investors should review the differences in two-asset exposure, futures structure, costs, and liquidity, and judge whether they can bear the possibility of large losses.