Cryptocurrency Q&A
How do spot bitcoin ETFs work?
How do spot bitcoin ETFs work?
SakuraWhisper
Tue Jul 09 2024
|
6
answers
1059
Could you please elaborate on the operational mechanism of spot Bitcoin ETFs? I'm curious to understand how these financial products enable investors to gain exposure to bitcoin without directly owning the cryptocurrency. What are the key components that make up a spot bitcoin ETF? How does it track the price of bitcoin, and how do the fund managers ensure that the ETF remains aligned with the performance of the underlying asset? I'm also interested in knowing the risks involved in investing in spot bitcoin ETFs and how investors can mitigate those risks.
6 answers
Sara
Thu Jul 11 2024
In the realm of cryptocurrency finance, spot Bitcoin ETFs typically depend on external custodians to safeguard their holdings.
Was this helpful?
162
91
Nicola
Wed Jul 10 2024
Another prominent cryptocurrency exchange, BTCC, based in the UK, offers a comprehensive range of services including spot trading, futures, and wallet management.
Was this helpful?
376
76
Riccardo
Wed Jul 10 2024
This approach is analogous to how spot gold ETFs entrust their physical gold to third-party vaults.
Was this helpful?
149
72
QuasarStorm
Wed Jul 10 2024
Of the ten spot Bitcoin ETFs currently trading, eight have chosen Coinbase (COIN) as their custodian for Bitcoin.
Was this helpful?
40
61
Chiara
Wed Jul 10 2024
Coinbase's reputation and track record in the cryptocurrency industry have likely contributed to its popularity as a custodian.
Was this helpful?
237
67
Load 5 more related questions
