Bitcoin ETF on crypto market

A Bitcoin ETF (Exchange-Traded Fund) is a highly liquid fund that changes price throughout the trading day, just like a stock, and offers exposure to the price movements of Bitcoin without the need to directly own or manage the cryptocurrency3

• . There are two main types of Bitcoin ETFs: spot Bitcoin ETFs and Bitcoin futures ETFs. Spot Bitcoin ETF: A spot Bitcoin ETF directly tracks the price of Bitcoin, primarily by holding a large amount of the cryptocurrency itself3
• . The U.S. SEC has recently approved spot Bitcoin ETFs, which are considered a game-changer for the crypto market as they offer institutional and retail investors exposure to Bitcoin without the complications and risks of owning it directly1
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• . Some approved spot Bitcoin ETFs include BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, and Bitwise Bitcoin ETP Trust4
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• Bitcoin Futures ETF: A Bitcoin futures ETF issues publicly traded securities that offer exposure to the price movements of Bitcoin futures contracts2
• . These ETFs invest in Bitcoin futures contracts, which are regulated by the CFTC and must trade on CFTC-regulated exchanges2
• . However, Bitcoin futures contracts don't track spot prices exactly, so returns may never be as high as, or in sync with, spot market prices2
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The approval of Bitcoin ETFs by the SEC is considered a significant milestone for the crypto industry, as it further legitimizes Bitcoin as an asset class and could potentially draw billions of dollars of investment, driving the price of Bitcoin higher1
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