What is bitcoin ETF?

[Lens]

The exchange traded fund ETF is a financial instrument that allows you to hold an asset without necessarily trading it and bitcoin ETF allows you to hold Bitcoin without trading it. It tracks the value of the Bitcoin.

What's your contribution?

 

[Nomad]

Bitcoin ETFs will be traded like securities instead of crypto assets. Instead of directly investing in bitcoin, you will be putting your money in an investment pool and the fund manager will take your bitcoin and invest in multiple assets. Normally, you trade bitcoin in the crypto exchange, however, with Bitcoin ETF, you will be trading in the stock market. This is what I have understood about Bitcoin ETF. I would appreciate it if somebody shed more light on this.

 

[Riberet19]

As far as I understand, an ETF is an investment instrument that is responsible for replicating the behavior of an asset or set of assets, so a Bitcoin ETF would be nothing more than an investment instrument that replicates the behavior of Bitcoin without being Bitcoin.

 

[MaxMass]

Bitcoin futures ETFs are traded on stock exchanges just like individual stocks, and their price is based on the underlying bitcoin futures contracts they hold.