Let’s find out what is a #BTC #ETF. 💸

A Bitcoin ETF, short for Bitcoin exchange-traded fund (ETF), involves pooling investor funds to purchase Bitcoin futures contracts. These contracts allow for the buying or selling of Bitcoin at an agreed-upon price in the future. Managed by a firm, a Bitcoin ETF is listed on a traditional stock exchange.

Although Bitcoin has experienced a decline of over 60 percent since its all-time high in November 2021, it is still up by 64 percent since the beginning of 2023. This price increase has sparked interest among many individuals seeking to participate in Bitcoin investments.

Investing directly through a cryptocurrency exchange can be complex for certain investors. However, the introduction of Bitcoin ETFs has the potential to simplify the investment process.

Currently, Bitcoin ETFs are limited to holding Bitcoin futures contracts. Alternatively, there are also funds available that track companies with exposure to Bitcoin and blockchain technology.

Peter Jensen, CEO of the blockchain payments company RocketFuel Blockchain, explains, 'By enabling mainstream investors to participate indirectly in Bitcoin through ETFs, it allows them to invest without actually holding the digital asset itself, which can help alleviate concerns for newcomers.'

While the availability of Bitcoin ETFs in the United States remains limited, other jurisdictions such as Canada and Europe have approved a greater number of these funds. $BTC $