Cryptocurrency Q&A
Why buy spot ETF instead of bitcoin?
Why buy spot ETF instead of bitcoin?
CryptoKnight
Sat Jun 08 2024
|
6 answers
1325
Could you explain to me why someone might prefer investing in a spot ETF rather than directly purchasing Bitcoin? I'm trying to understand the advantages of this approach. Does a spot ETF provide exposure to Bitcoin's price movements without the associated risks of owning the actual cryptocurrency? Are there any costs or fees involved that I should be aware of? Also, how does the performance of a spot ETF compare to investing directly in Bitcoin? I'm curious to know if there are any tax implications that differ between these two investment options. Could you elaborate on these points, please?
6 answers
CherryBlossomPetal
Mon Jun 10 2024
Cryptocurrency ETFs, whether spot or futures-based, present a more convenient avenue for investors seeking exposure to bitcoin without the complexities of direct ownership.
Was this helpful?
326
29
Lorenzo
Sun Jun 09 2024
Spot bitcoin ETFs are anticipated to have competitive expense ratios, falling within the range of 0.80% to 1.00%.
Was this helpful?
192
74
GwanghwamunGuardianAngelWings
Sun Jun 09 2024
Spot ETFs, specifically, offer a simplified method for investing in bitcoin, bypassing the need for secure storage and the intricacies of crypto transactions.
Was this helpful?
340
66
isabella_taylor_activist
Sun Jun 09 2024
This cost-efficiency is attractive to investors, as it translates into lower ongoing costs for maintaining their bitcoin exposure through ETFs.
Was this helpful?
117
60
Raffaele
Sun Jun 09 2024
Futures-based ETFs, on the other hand, provide exposure to bitcoin's price movements without the requirement of holding the underlying asset.
Was this helpful?
233
59
Load 5 more related questions
