LIVEWhat Is a #bitcoin #etf and Why Does Everyone from BlackRock to Grayscale Want One? 🤔
Learn more about how It Works and how to Invest 👇🏻
1- A Bitcoin ETF creates a simple, legally compliant way to trade the price of Bitcoin , accessible on markets that investors are already familiar with.
2- What is an ETF?
#etf refers to the exchange-traded funds that are a collection of assets whose shares are traded on a stock market.
They blend the characteristics and potential benefits of mutual funds, stocks and bonds.
3- ETFs track BTC's value and trade on traditional stock exchanges rather than #crypto exchanges.
In addition, they allow investors to invest in Bitcoin without the inconvenience of using a cryptocurrency exchange while also giving price leverage.
4- The majority of Bitcoin ETFs employ futures to simulate the cryptocurrency's performance.
Futures allow investors to protect themselves against turbulent markets by ensuring that they can buy or sell a specific cryptocurrency at a particular price in the future.
5- An ETF monitors the price of an underlying asset or index.
For example, a Bitcoin ETF would function similarly, with the price of one share of the exchange-traded fund fluctuating in lockstep with the price of #BTC
6- Why the need for a Bitcoin ETF?
With a BitcoinETF investors need not worry about private keys, storage, or security.
They own shares in the ETF and can gain exposure to the cryptocurrency market without having to go through the hoops of purchasing and holding crypto.
