Investment firm VanEck is launching a bitcoin futures exchange-traded fund (ETF) this week, following in the footsteps of ProShares, which rolled out a similar product in October.

Why should we care?
VanEck’s bitcoin futures ETF, like ProShares’ offering, will allow investors to get exposure to bitcoin without having to hold the cryptocurrency. It will track bitcoin futures instead of the price of bitcoin. The VanEck Bitcoin Strategy ETF will start trading on the Chicago Board Options Exchange (CBOE) on Tuesday, November 16, under the ticker XBTF. It comes to market as the lowest cost bitcoin-linked ETF, with a net expense ratio 30 basis points lower than its next closest competitor, the company said. (XBTF has a net expense ratio of 0.65%.) “While a ‘physically backed’ bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios,” said Kyle DaCruz, director of digital assets product with VanEck said in a statement. The launch of XBTF comes days after the Securities and Exchange Commission rejected VanEck’s spot bitcoin ETF application over concerns relating to the prevention of fraudulent and manipulative practices, and investor protection.