What is a Bitcoin ETF?
A Bitcoin ETF (Exchange-Traded Fund) allows investors to gain exposure to bitcoin's price without directly owning the cryptocurrency. These ETFs trade on stock exchanges like regular stocks, making it easier for traditional investors to participate in the bitcoin market.
The first U.S. Bitcoin ETFs were approved in 2024, with spot Bitcoin ETFs gaining regulatory approval for the first time. These ETFs offer a regulated investment option for institutions and retail investors. Bitcoin ETFs can be categorized into two types: spot ETFs, which directly hold bitcoin, and futures ETFs, which track bitcoin prices through derivative contracts.
