A Bitcoin ETF is an exchange-traded fund that invests primarily in assets related to the original cryptocurrency, Bitcoin. ETFs sell shares to investors on the open market, and use the proceeds to build a portfolio of assets based on a market index, a stock market sector or another asset class like crypto. ETFs are similar to mutual funds.
How do I choose the best bitcoin ETFs?
Our methodology for selecting the best Bitcoin ETFs included in this list is the following: • Avoid ETFs trading only in blockchain related stocks or other cryptocurrencies rather than Bitcoin and Bitcoin futures. • Filter the remaining ETFs for those with more than $10 million in total AUM. This screen left us with six funds.
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.
