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Are bitcoin ETFs based on futures contracts?

Unlike Bitcoin ETF applications that the regulator has previously rejected, the proposals by ProShares and Invesco Ltd. are based on futures contracts and were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”

Will the SEC approve bitcoin ETFs?

The Security and Exchange Commission (SEC) continues to evaluate whether it will ultimately approve ETFs that own Bitcoin directly. To help you understand this new corner of the ETF universe, Forbes Advisor has profiled all of the Bitcoin ETFs currently available for trading in the United States.

Is the futures market safe for bitcoin exchange-traded funds?

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. Futures are an agreement between two parties to sell a particular asset at a future date.

How much does it cost to buy a bitcoin ETF?

Here’s why: Cryptocurrency exchanges typically charge one-time fees to purchase Bitcoin while owning a Bitcoin ETF incurs an annual expense ratio fee. Say, for example, you want to buy Bitcoin on Binance.US, one of the low-fee leaders among crypto exchanges. You would likely pay 0.1% of your purchase price as a fee.

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