Bitcoin ETF, namely Exchange Traded funds, is a cryptocurrency trading fund. Traders can gain exposure to Bitcoin through the traditional stock market without buying and selling cryptocurrency assets directly on the cryptocurrency exchange.
At present, the well-known Bitcoin ETFs in the market mainly include GTBC, the Bitcoin fund launched by Grayscale and BTCC, the trust fund established by Canadian asset management company Purpose Investments Inc.
Both are valuated in traditional fiat currency, which is a regulated and compliant traditional financial product. Fund companies will hold physical Bitcoin for each share purchased or traded by investors and put it in the custody of crypto companies in a cold wallet, rather than tracking asset prices through financial instruments such as derivatives or futures contracts. Investors can enter the Bitcoin fund market through fiat currency. This helps more investors with traditional fund preferences to enter the cryptocurrency market.
However, the Bitcoin trust funds in the market originate from many regions and institutions, so the product types and user thresholds of the funds are different.
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