First U.S. Bitcoin futures exchange-traded funds will launch on TuesdayThis is a significant milestone in the cryptocurrency industry. Others may follow.

The long-awaited ProShares ETF will offer exposure to bitcoin futures contracts — agreements to buy or sell the asset later for an agreed-upon price — rather than bitcoin itself.

Karan Sood (CEO and managing director, Cboe Vest), a financial platform in McLean Virginia, said that the ETF is a disruptive innovation to existing products. That’s why investors get excited.

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Investors may purchase bitcoin using digital currency exchanges. But, safety is a concern. worry about hackersOder losing so-called private keysThey provide easy access to assets.    

You also have the option of bitcoin trustsThere are two options: You can add bitcoin directly to your portfolio through retirement or brokerage accounts. These assets can have higher fees, and may not reflect the price fluctuations of digital currencies.

While bitcoin futures ETFs don’t offer what the industry eventually wants — funds that invest directly in digital currency — it provides another choice as companies vie for the green light from the Securities and Exchange Commission to launch regular bitcoin ETFs.

The cost of bitcoinCoin Metrics reports that Monday’s price rose by more than 2% to $61,958.24

Financial experts advise prospective investors to be aware of a few important things before investing in bitcoin futures ETFs.

Sood stated that although the assets may be “very closely related” to bitcoin, they won’t reflect the value of digital currencies because the fund tracks future contract prices. 

It is also more costly to have funds than it is to manage individual assets. However, some investors will pay more to have an ETF’s institutional level liquidity, custody, and execution than manage the currency, he explained.

However, advisors continue to see digital currency as a speculative investment and warn that it is risky to place bets on the futures price of futures contracts.  

Jordan Benold, a certified financial planner, said, “It is just the greatest risk that you would ever accept.” He explained the risks associated with bitcoin and futures contracts, as well as the potential for volatility. This is the time when you’re truly into high stakes poker.

Bitcoin’s price is determined by supply and demand of an “unstable group of market players,” which makes it ineligible for investment. CFP Anthony Watson is the founder and president at Dearborn, Michigan-based Thrive Retirement Specialists.

Some advisors won’t discourage anyone from trying out bitcoin futures if they are confident about their retirement plans and have other financial goals.

Benold stated, “I would only say to do it on very small scale.” Put your toe in the water.