Investing in Bitcoin is something that has become much more popular and accessible in the last few years, however, before the introduction of Bitcoin investing through brokerages (including Invstr), it was a bit more complicated to invest into Bitcoin. One alternative that began developing in the last few years appealed to investors not interested in buying Bitcoin directly, but rather an ETF or more traditional equity providing exposure to Bitcoin as an asset. The name of this instrument is the Grayscale Bitcoin Trust, and its shares track the Bitcoins price fees and expenses. More recently, another potential Bitcoin based equity has come to light, challenging the de-centralization of crypto via its repackaging on traditional markets.
Specifically, last month, the U.S. Securities and Exchange Commission approved a fund firm called Teucrium to issue a Bitcoin futures exchange-traded product. Even so, ETFs tied to Bitcoin remain Futures ETFs rather than Spot ETFs. This means that trades on these Bitcoin ETFs would be based on the price of Bitcoin futures which is a smaller market and not directly correlated to the price of Bitcoin. The SEC wants surveillance access before issuing approval for a crypto spot ETF, a position crypto exchanges have no interest in as it would undermine the decentralized concept of Crypto.
What do you think about Bitcoin or other crypto Spot ETFs? And will we ever see them?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.