Bitcoin and Ether ETF Markets Expected to Grow to $450B: Bernstein (2024)

FAQs

What's the point of bitcoin ETFs? ›

Bitcoin futures ETFs are funds that bundle Bitcoin futures contracts. They provide investors without the means or desire to invest directly in cryptocurrency a way to gain exposure to these volatile and sometimes lucrative assets. You can purchase them on official exchanges.

About Bitcoin ETF

Bitcoin ETF's price today is US$0.0003435, with a 24-hour trading volume of $12. ETF is -0.19% in the last 24 hours.

Disadvantages of Crypto ETFs

1 When buying shares of an ETF, you pay your brokerage's trade fees and the fund's expense ratio. Crypto ETFs have expense ratios from 0.39% to 1.5%, much higher than the transaction fees charged by crypto exchanges. 9.

The U.S. Securities and Exchange Commission approved the first 11 Bitcoin spot ETFs in the United States on Jan. 10, 2024. Bitcoin futures ETFs were already trading since 2021.

The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble. As with other investments, it's important to hedge your portfolio.

NAV = (assets - liabilities) / ETF shares outstanding

At a given time, the market price of an ETF is dependent on the intersection of its supply and demand in the market.

Do Bitcoin ETFs pay dividends? ›

Investors in Bitcoin ETFs primarily benefit from changes in the price of Bitcoin rather than receiving dividend payments. These funds are designed to track the performance of Bitcoin and provide a convenient way for investors to gain exposure to the cryptocurrency market.

Bitcoin ETFs are generally available at any broker that allows customers to purchase stocks on a major U.S. exchange. The best brokers for stock trading allow you to buy any available ETF with no commission, so you can get in and out of a position at a low cost.

Of course, the existence of a cheaper and easier way to trade Bitcoin doesn't make the digital coin a buy, only cheaper and easier to do so. So Bitcoin ETFs are a good way for traders to play Bitcoin if that's already their intent, especially if it helps them avoid dubious crypto exchanges.

Another form of diversification is investing in assets with low correlation. Assets with low correlation tend to move in different directions, so for instance when stocks are up, Bitcoin or a Bitcoin-linked ETF tend to be down. This further diversifies your portfolio, and can help you weather market bumps over time.

Key Points

Leveraged ETFs seek to magnify the return of a benchmark, while an inverse ETF seeks to have the opposite return of an index. These ETFs have daily performance objectives; over the long term, their performance can deviate widely from the stated multiple of the performance.

Exchange traded funds (ETFs) are a low-cost way to earn a return similar to an index or a commodity. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.