Is there any ETF for bitcoin?

The SEC's January 2024 approval of 11 spot Bitcoin ETFs marks a milestone, offering investors easier access to Bitcoin's price fluctuations through regulated, exchange-traded funds.

Mar 19, 2025 at 03:29 pm

As a pioneer in the cryptocurrency field, Bitcoin’s price fluctuations have always attracted the attention of many investors. ETFs (trading open-end index funds) have become a popular choice for investors to participate in various asset investments due to their convenient trading and low cost. So, are there Bitcoin ETFs? The answer is yes.

Bitcoin ETF is a publicly traded investment fund that allows investors to gain investment exposure to Bitcoin (BTC) without actually holding cryptocurrencies. Unlike cryptocurrencies traded on cryptocurrency exchanges, Bitcoin ETFs are traded on traditional stock exchanges such as the New York Stock Exchange and the Nasdaq. Investors buy stocks of funds holding Bitcoin, rather than buying Bitcoin itself directly. This regulated investment tool lowers the technical barriers to investing in cryptocurrencies and makes it easier for traditional investors to access Bitcoin price changes.

Bitcoin ETFs are mainly divided into spot Bitcoin ETFs and futures Bitcoin ETFs. Spot Bitcoin ETFs are directly invested in Bitcoin itself, and investors have a portion of the actual cryptocurrency, and the value of the ETF is directly related to the price of Bitcoin in the market. Futures Bitcoin ETFs are invested in futures contracts whose value comes from the expected future price of Bitcoin, and investors can speculate on the price trend of Bitcoin without holding actual cryptocurrencies.

On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, a historic event marking the official entry of Bitcoin ETFs into the mainstream investment market. Previously, Bitcoin Futures ETFs had been traded on US exchanges for several years.

Bitcoin ETFs operate in a similar way to traditional ETFs. The ETF issuer (usually an asset management company) purchases the underlying asset (Bitcoin) and stores it securely at the custodian, and then issues shares to the fund, providing investors with access to the assets that the fund wins. As an exchange of annual fund management fees, financial institutions manage the purchase, storage and custody of Bitcoin on behalf of ETF investors. When an investor purchases a Bitcoin ETF, it is equivalent to buying stocks in the Bitcoin pool. The process involves creating new ETF stocks to meet demand; when the stock is sold, the stocks are redeemed, adjusting the total number of ETF stocks in circulation. The value of ETF stocks reflects the performance of Bitcoin, and the market maker actively buys and sells to ensure that ETF stocks remain in sync with the price of Bitcoin.

If you want to invest in Bitcoin ETFs, you can refer to the following steps:

Select ETFs : Compare the fee structure of different ETFs (including management fees and transaction fees, etc.), liquidity (judged by the average daily trading volume and bid-sell spread), and tracking error (difference between the ETF price and the spot price of Bitcoin).

Open an investment account : Choose a securities company and consider factors such as commissions and fees, user experience, etc. Fill out the application form on the website of the selected securities company, perform identity verification and deposit funds.

Place an order to purchase : Find the Bitcoin ETF code on the trading platform or financial website, select the order type (market order or limit order), set the purchase quantity and confirm the transaction.

Monitoring and management : Check ETF price fluctuations regularly, evaluate portfolio performance, adjust strategies according to market changes, set stop loss orders, and choose the right time to sell.

Investing in Bitcoin ETFs provides investors with new ways to participate in the Bitcoin market, but they also need to pay attention to their risks, such as Bitcoin price fluctuations, management expenses, etc. Before investing, it is recommended to fully understand the relevant knowledge and make prudent decisions based on your own risk tolerance and investment goals.

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