Investors that want to invest in Bitcoin (CCC:BTC-USD) without buying the crypto directly can start looking toward the first ETF.
Here’s all the recent news investors need to know about Bitcoin ETFs.
- Recent reports claim that the U.S. Securities and Exchange Commission (SEC) isn’t going to get in the way of a Bitcoin Futures ETF from ProShares and Invesco.
- If so, that would open the way for the first Bitcoin ETF and could have others following suit.
- This futures ETF will allow investors to jump in on the crypto hype without directly holding BTC.
- So why would traders want to hold a stake in a Bitcoin futures ETF rather than the crypto?
- A futures ETF isn’t based directly on the value of the asset it represents.
- As a result, its price can fluctuate higher and lower.
- That means that traders might be able to get in at a lower price than BTC during a fall and sell at a higher rate during a rally.
- On that same note, additional costs that come with an ETF mean it will likely be more expensive to invest in than just buying BTC.
- However, the risk of loss is still strong as an investment in an ETF won’t protect traders from fluctuations in Bitcoin prices.
- Bitcoin has been on the rebound lately as the price of the crypto soars higher.
- This has it trading in the $61,000 range, which is approaching the cryptos’ all-time high of $64,863.10.
Crypto traders looking for more news today will want to stick around a little longer!