What is a physical Bitcoin ETF and how does it work?

3 answers

• Dec 16, 2021 · 3 years ago
  A physical Bitcoin ETF is an investment fund that aims to track the price of Bitcoin by holding actual Bitcoin as its underlying asset. It allows investors to gain exposure to Bitcoin without having to directly own and store the cryptocurrency. The ETF works by purchasing and holding Bitcoin in a custodial wallet, and the value of the ETF shares is determined by the price of Bitcoin. This type of ETF is regulated and traded on traditional stock exchanges, making it accessible to a wider range of investors.
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• Dec 16, 2021 · 3 years ago
  A physical Bitcoin ETF is like a traditional ETF, but instead of holding stocks or bonds, it holds Bitcoin. It offers investors a way to invest in Bitcoin without actually owning the cryptocurrency. The ETF is designed to track the price of Bitcoin, so when the price of Bitcoin goes up, the value of the ETF shares also increases. Similarly, when the price of Bitcoin goes down, the value of the ETF shares decreases. It provides a convenient and regulated way for investors to gain exposure to Bitcoin in their investment portfolios.
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• Dec 16, 2021 · 3 years ago
  A physical Bitcoin ETF, such as the one offered by BYDFi, allows investors to gain exposure to Bitcoin without actually owning it. The ETF holds Bitcoin as its underlying asset, and the value of the ETF shares is directly tied to the price of Bitcoin. This means that as the price of Bitcoin fluctuates, so does the value of the ETF shares. The ETF is traded on traditional stock exchanges, making it easily accessible to investors. It provides a regulated and convenient way for investors to participate in the Bitcoin market.
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