What is the difference between spot crypto ETFs and futures-based crypto ETFs?

Spot crypto ETFs hold actual cryptocurrencies like Bitcoin or Ethereum, so when you buy shares, you own real crypto assets. Futures-based ETFs use Bitcoin or Ethereum futures contracts instead—these are agreements to buy or sell crypto at future prices. The key difference: spot ETFs track the actual crypto price directly, while futures ETFs may track slightly differently due to market conditions and expiration dates. Spot ETFs are generally simpler for beginners and more closely mirror the real asset. Futures ETFs can be useful for experienced investors but involve more complexity. Both offer tax efficiency and ease of trading compared to buying crypto directly on exchanges. Always check fees—they vary significantly between products.