What do we need to know before America's first Bitcoin ETF opens for trading?

Source: Decrypt

By Jeff John Roberts

Compiler: Chen Zou

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What exactly is the ProShares Bitcoin ETF?

ETFs are"exchange traded fund". An ETF buys and wraps one or more assets—a basket of investments ranging from gold to stocks of different companies (for example, a marijuana ETF)—and ultimately sells them as a single stock that anyone can trade on the open market. ETFs have their price track that of the underlying asset.

pure"pure"Bitcoin ETFs are a little different. Instead of bitcoins, ProShares buys and wraps futures contracts pegged to the future price of bitcoins. As the company made clear in its Monday morning announcement."first level title"

This sounds complicated, is it?

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How do I buy the new Bitcoin ETF?

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When can I buy it?

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According to MarketWatch, the annual fee for the ProShares ETF is 0.95 percent. So if you buy $1000 of stock, there will be a $9.50 fee per year. That's more than most regular ETFs charge. This is mainly due to the fact that this is a futures ETF.

Yes, as many as three or four other funds are expected to receive SEC approval and begin trading this week. But they will also be futures ETFs, similar in price and structure to ProShares' offerings.

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Is this a good way to buy bitcoins?

If you want to gain exposure to bitcoin through a brokerage account, this ETF offers a new way to do so. Note that you can also do this by buying shares in Grayscale Bitcoin Trust (ticker: GBTC), an option that has existed for a long time, but has a 2% annual fee, and GBTC is not the same price as Bitcoin. Not an exact match. Another roundabout way is to buy shares in companies that hold bitcoin, such as MicroStrategy, Square, and Tesla; earlier this month, the SEC approved a company that holds bitcoin or is developing bitcoin products."Bitcoin Revolution Inc."ETFs.

This article is from Bitpush.News, reproduced with authorization.

This article is from Bitpush.News, reproduced with authorization.