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Author: Admin | 2025-04-28
What you need to know about these unique assets. Key takeaways Spot bitcoin ETPs are the first exchange-traded products that track the price of bitcoin by holding actual bitcoin (i.e., "spot") as their underlying asset.Supporters believe they can make investing in bitcoin more accessible to the general public.ETPs don’t give you direct ownership of bitcoin, but still have investment and security risks. For much of 2023, crypto enthusiasts hoped for the approval of a spot bitcoin exchange-traded product (ETP). Some believed it would bring enough new money to the crypto industry to save it from 2022’s bitter bear market.Now they're here and available to trade. But what are spot bitcoin ETPs, exactly? And how are they different from spot trading bitcoin and other crypto assets? Let’s explore the key differences and what to consider from an investing standpoint. Subscribe to Decode Crypto Boost your crypto knowledge. Sign up for monthly insights from crypto thought leaders. What are spot bitcoin ETPs?Spot bitcoin ETPs are investments that track the price of bitcoin. They’re the first exchange-traded products that hold actual bitcoin (i.e., “spot”) as their underlying asset. Other bitcoin-related exchange-traded products exist, but their underlying assets are typically bitcoin futures, which are derivatives of bitcoin, as opposed to the real thing.You may already be familiar with the concept of ETFs and crypto-related ETFs. All ETFs are part of a broader category called exchange-traded products (ETPs), which are listed on an exchange and can be bought and sold during market hours like a stock. ETFs, the most common type of ETP, are governed by the Investment Company Act of 1940 and are pooled investment opportunities that typically include baskets of stocks, bonds, and other asset groups based on fund objectives. ETPs, however, are not subject to this Act, and as such, generally don't
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