I'd also add, not just easier and cheaper, but in theory safer. They'll be taking the risk of properly securing the bitcoin and having insurance if they screw up, presumably. In some respects that's good because they should be following best practices in doing so, but they have to be sure they are really getting it perfect.
Good point, as it's a spot ETF not a futures ETF, it will require them to actually hold bitcoins. I believe they intend to use Coinbase as their custodian, so it's not like BlackRock would have to do any extra work themselves. Coinbase is already regulated and has been doing this for years, so all should work fine from the security side.
I've no idea whether such ETF would require BlackRock to purchase any extra insurance (as far as I know ETFs are not FDIC insured) but they surely have plenty of experience in managing/mitigating financial risks.
The problem with the futures ETF is that it really has essentially phantom bitcoins. Like the gold futures ETF not having to hold physical gold. It essentially is just a way to gamble on the direction of the price without having to "settle" them at the end which saps demand from "physical" bitcoin.
You get nearly none of the benefits of bitcoin, only the risk of a price drop. Yes, you could get the benefit of a price increase, but that is all.
Might as well gamble on the flip of a coin.
