Bitcoin is a relative newcomer to the world of exchange-traded funds. Bitcoin ETFs tied to futures on the cryptocurrency launched in 2021, but it wasn’t until January 2024 that U.S. regulators allowed exchange-traded products tied directly to the day-to-day movement of bitcoin prices—known as the asset’s spot prices.
What is a bitcoin exchange-traded fund?
These funds hold the cryptocurrency rather than crypto futures contracts and trade on major U.S. exchanges. The approval of bitcoin exchange-traded funds represents a resounding institutional validation of the cryptocurrency, marking a departure from its initial reputation as a speculative and volatile asset.
What are the 11 spot bitcoin ETFs?
The 11 spot Bitcoin ETFs approved by the SEC include a diverse range of offerings from well-known investment firms. These ETFs are: These ETFs are set to provide more secure and simplified Bitcoin investment options for a broader investor base .
