What is a bitcoin ETF?

A Bitcoin ETF is anexchange-traded fundcomprised of bitcoin or assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. Theoretically, bitcoin is purchased by the company, securitized, and sold or traded on an exchange.

Is there a cryptocurrency ETF?

However, the Security and Exchange Commission continues to reject these proposals;there is no cryptocurrency ETFdirectly representing an underlying coin. Currently, the underlying assets within Bitcoin ETFs are linked to Bitcoin futures contracts traded on the Chicago Mercantile Exchange.

What's going on with cryptocurrency ETFs in 2023?

The rapid rise and fall of cryptocurrency prices over the past two years has hurt asset gathering for Bitcoin ETFs, as well as cryptocurrency and blockchain-related funds. Cryptocurrencies have been surprisingly calm so far in 2023, eschewing much of the volatility they've become known for in the past.

Why do bitcoin ETFs not own bitcoin?

Bitcoin ETFs don’t own Bitcoin because the SEC is concerned that BTC is traded on non-regulated cryptocurrency exchanges. SEC Chair Gary Gensler is on the record stating that given the novel character of cryptocurrency, relying on the proven and highly regulated futures market is a much safer approach for Bitcoin exchange-traded funds.