What is a bitcoin ETF?

1 A bitcoin ETF mimics the price of the digital currency, allowing investors to buy into the ETF without trading bitcoin itself. 2 Investing in a bitcoin ETF cuts out any issues of complex storage and security procedures required of cryptocurrency investors. 3 The Securities and Exchange Commission hasn't approved any digital currency ETFs.

Does the SEC approve bitcoin ETFs?

The SEC has not approved any Bitcoin ETFs for funds that hold bitcoin. Instead, it has approved Bitcoin ETFs linked to Bitcoin futures contracts that trade on the Chicago Mercantile Exchange (CME).

Will a publicly traded bitcoin ETF boost the price of bitcoin?

The approval of a publicly traded bitcoin ETF would also very likely boost the price of bitcoin to new highs as the above-mentioned institutional investors, as well as private investors who are not very versed in technology, would now be able to freely invest in the digital currency through the ETF.

Is there a bitcoin ETF in Canada?

While American investors will still have to wait for a digital currency ETF that trades on a US exchange, Canada approved North America’s first Bitcoin ETF in February 2021. The Purpose Bitcoin ETF (BTCC) trades on the Toronto Stock Exchange (TSX) and is available in $CAD (FX hedged and unhedged) and in $USD (unhedged).