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Why do bitcoin ETFs not own bitcoin?

Bitcoin ETFs don’t own Bitcoin because the SEC is concerned that BTC is traded on non-regulated cryptocurrency exchanges. SEC Chair Gary Gensler is on the record stating that given the novel character of cryptocurrency, relying on the proven and highly regulated futures market is a much safer approach for Bitcoin exchange-traded funds.

What are bitcoin futures ETFs?

On April 6, 2022, the SEC approved the Teucrium Bitcoin Futures Fund (BCFU), so the list of approved Bitcoin ETFs continues to grow. 8 It's important to note that these ETFs are not entirely comprised of Bitcoin futures. For the most part, they invest in traditional securities, holding Bitcoin futures contracts when it meets the fund's strategy.

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).

Can You short sell bitcoin ETF shares?

You can short sell bitcoin ETF shares if you believe the price of the underlying asset will go down—an advantage you won't find by investing in bitcoin itself.

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