Cryptocurrency Q&A
Do Bitcoin ETFs actually hold Bitcoin?
Do Bitcoin ETFs actually hold Bitcoin?
DongdaemunTrend
Sat Dec 21 2024
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7 answers
1706
I'm curious about Bitcoin ETFs. Do they actually own and hold Bitcoin in their portfolios, or are they just tracking the price of Bitcoin without actually owning any?
7 answers
CryptoVisionary
Mon Dec 23 2024
Instead, they utilize regulated futures contracts to track the price of Bitcoin.
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Elena
Mon Dec 23 2024
This approach minimizes the risks associated with storing the actual cryptocurrency.
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MysticGalaxy
Mon Dec 23 2024
For instance, futures ETFs avoid the threat of theft, which is a significant concern for those holding Bitcoin directly.
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Margherita
Mon Dec 23 2024
Futures ETFs operate differently from spot Bitcoin ETFs.
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BonsaiStrength
Mon Dec 23 2024
They also mitigate the risk of hacking, which has become increasingly prevalent in the cryptocurrency space.
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