Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Bitcoin is a newcomer to the world of exchange-traded funds ( ETFs ). Bitcoin ETFs allow investors to get exposure to the enticing potential of BTC without having to safely store it.
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.
Will the SEC approve bitcoin ETFs?
The Security and Exchange Commission (SEC) continues to evaluate whether it will ultimately approve ETFs that own Bitcoin directly. To help you understand this new corner of the ETF universe, Forbes Advisor has profiled all of the Bitcoin ETFs currently available for trading in the United States.
What are bitcoin futures and how do they work?
Futures are an agreement between two parties to sell a particular asset at a future date. They allow traders to speculate about how prices may move in the future with minimal upfront investment because they frequently use leverage, or borrowed money. Here’s how it works in the case of the ProShares Bitcoin Strategy ETF (BITO).
