I know what the difference between spot and futures price if that is what you are asking.

But honestly, it’s irrelevant.

Mainstream portfolio managers are already using BITO in the manner you suggest. Acorns makes it available as an option in their investment portfolio today as just one example.

BITO isn’t even the only option, there is also GBTC. The point is not which of these are better, only that these investment products already exist and are being used by managers. They compete with each other, and I’m curious why you think a spot priced ETF will create further inflow when BITO and GBTC already exist and capturing the inflow from interested investors.

I will grant you the expense ratios would be much cheaper for the spot priced ETF. And the performance would be identical to the underlying BTC price, not just “close enough”, so it could reasonably cut into the market share of BITO, and it may out compete GBTC but in both cases that is cannibalism not necessarily inflow.