if we if it was like november uh second right uh the etf would be tracking the futures price of the next month and they it would be rolling in to every single as the contracts the futures contracts settle because it resettles once a month every every month it rolls into the next uh the next futures month uh and so there's these things this thing is called contango where there's a actually a discrepancy between uh the bitcoin futures price of one of month one to month two so like say for example the bitcoin futures of month one is is uh clocking in at sixty thousand dollars and then the next month if people futures traders have predicted that it's going to be NUMBER_TOKEN NUMBER_TOKEN the etf will sell all of the NUMBER_TOKEN NUMBER_TOKEN valuations of bitcoin into NUMBER_TOKEN NUMBER_TOKEN valuations of bitcoin and they will actually lose shares along the way of course that this can actually happen in reverse so in theory it cancels out over time but really what this does is this allows a bunch of middlemen and traders and who want to take advantage of this arbitrage opportunity to just kind of milk out just the leakage of value out of this etf right so like do you know how to trade around terms like contango like is that something that you know how to do because other people do and other people are taking advantage of this but you basically all you have to do is you just like the value of an etf is that it's in a brokerage right so it's in somebody's schwab account their fidelity account they don't have to open up coinbase you just buy it with all their other stocks they buy the etf but what you're saying is because it's a futures etf and not a spot etf it's less capital efficient for them to do so and it's more expensive for them to do so versus a spot etf right the best thing you can do of course is get over the hump go open an account at gemiini or coinbase and just buy spot market and let like them custody it and then graduate into you know going bank list that's the best thing you can do but if you're locked into a retirement account an etf is the second best the problem is this etf is a futures-based etf it's not a spot-based etf and so it's more expensive for you you're actually losing money versus buying bitcoin in in a spot market on something like coinbase is that right yeah that's exactly right so if you are interested in just buying and holding btc bitcoin on your traditional brokerage this is actually just not you're going to lose money over time than if you had just bought actual bitcoin uh and so that actually just puts people that actually compliantly can't go actually buy bitcoin at a disadvantage because they have to pay all these fees all these uh these traders uh their arbitrage opportunities uh where they could have just done a spot driven market and the difference is a very important difference about a spot driven market is that when people buy a spot driven market etf that etf goes out and buys bitcoin and puts it on the balance sheet right there's actually bitcoin there and so the actual etf
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