Since the creation of Bitcoin as the first Blockchain-based Cryptocurrency, digital assets have continued to remain popular. After Bitcoin, many other cryptocurrencies like Ethereum, Dogecoin, and Litecoin have also sprung up. The global adoption of digital assets has continued to rise as many cryptocurrencies have sprung up. Many crypto analysts generally perceive these attractions to improve the overall adoption and value of the Blockchain space. Financial giants like FinTechs & Banks have continued to design bespoke products tailored to the satisfaction of crypto users. One of such products is Crypto ETFs, which became prominent in Canada, and are popular globally.

A Crypto ETF is a fund that comprises many cryptocurrencies and tracks the price of one or more digital tokens. Crypto ETFs have similarities with stocks because they trade daily and do not have a fixed price at any time. Investors can use a Crypto ETF to track the price of one digital token. And its price is dependent on the activities of investors. One of the benefits of Crypto ETFs is that they do not burden the investor with cryptocurrency ownership costs.

Unlike stocks, they primarily help the investor with trading options. In typical ETFs, share prices are determined by the movement of derivatives against the actual prices of the Cryptocurrency assets. This means that share prices rise with an increase in future contract prices. Alternatively, when future contract prices decline, share prices go low. Unfortunately, due to the added risks behind their operations, there are still issues around transparency with Crypto ETFs.

At the moment, Crypto ETFs exist in two different forms. The first types are Crypto ETFs that are backed by cryptocurrencies. In this instance, the investment firm in charge of the funds uses them to purchase cryptocurrencies. Investors of the firm will then purchase these cryptocurrencies like shares. The investor's advantage is that they do not have risk exposure from owning Cryptocurrency. This means that the shares they own in the investment fund represent a stake in Cryptocurrency.

In the second type of ETF, investor shares do not track cryptocurrencies but cryptocurrency derivatives. Futures contracts and Exchange Traded Products (ETPs) will be tracked by the shares bought by investors from the investment firm. Proshares Bitcoin Strategy ETF is the first U.S ETF approved by the Securities Exchange Commission (SEC) to track Bitcoin futures. Since its operation last October, it has provided investors with exposure and huge returns from Bitcoin trading without owning them.

Despite being new digital assets, Crypto ETFs are gaining massive momentum and popularity globally. Since its inception in 2021, they have continued to attract many investors, as the digital asset class looks rewarding already. However, listed below are the benefits of Crypto ETFs;

One of the benefits of Crypto ETFs is that investors do not need to hold or be exposed to cryptocurrencies. Crypto ETFs provide investors with the necessary exposure to cryptocurrencies while also ensuring rewards. These ETF providers bear the expenses of trading cryptocurrencies, like gas fees, management fees, etc. Investors in Crypto ETFs do not worry about fees associated with owning crypto wallets, as they do not need them. However, despite not being connected with the cryptocurrencies, ETFs owners are rewarded with the returns from these digital assets.

Crypto ETF investors do not have to acquaint themselves with the technicalities involved in trading cryptocurrencies. One of the significant problems facing crypto adoption globally is the tedious nature of digital assets trading. However, trading of the digital assets is done by the ETF holders, while investors speculate on price. This is one of the primary reasons why investors should choose ETFs.

The increased rate of hacks and scams in the Cryptocurrency space makes Crypto ETFs the right asset choice for investors. However, since the digital assets are with the ETF holders, investors have zero risk of loss. Crypto ETFs have zero losses, and investors do not have to worry about losing their investment to theft or hacks. However, ETF holders should bear the loss if this happens.

With more than 1,800 cryptocurrencies available in the trading markets, Crypto ETFs allow investors get exposure to these assets. On the other hand, regular crypto exchanges limit this exposure. Many crypto exchanges do not list all the available cryptocurrencies. As a result, investors have to continually scatter around to look for exchanges listing their preferred tokens. However, one does not have to go through such stress with crypto ETFs. Cryptocurrency ETFs enable investors to diversify without incurring the costs for each digital asset.

You can buy Crypto ETFs from specific investment firms, unlike cryptocurrencies purchased via exchanges or peer-to-peer transactions. Investors can purchase Bitcoin ETFs shares like BITO via online brokerages in the U.S. An investor would have to set up a brokerage account on platforms like Etrade, Robinhood, or Fidelity. Once you have set up the account, you can buy the number of shares you want from Bitcoin Strategy ETF.

In a place like Canada, the process is typically the same. After setting up a brokerage account, investors can purchase their ETF. ETFs are available on platforms like Fidelity Advantage ETF and Purpose ETF. Globally, investment firms have continued to get a license to sell ETFs from their Financial regulators. However, with the rapid adoption of cryptocurrencies, there is a growing expectation that ETFs will continue to rise globally.

Crypto ETFs allow investors to diversify their investments without owning the assets themselves. Investors don't associate with the risks and costs of owning the underlying Crypto ETF share but earn rewards. Crypto ETFs continue to gain prominence, and more of them will continue to spring up.

You can purchase individual tokens on crypto exchanges such as  Binance ,  Coinbase ,  Kraken ,  and  Bitfinex.

Mere days after the first Bitcoin ETF ProShares went live, the NYSE is all set to welcome a second one from Valkyrie also. Its full name is Valkyrie Bitcoin Strategy ETF and the second futures based ETF has been planned to go live for trading under the BTF ticker on Oct 22. It was planning to use the BTFD ticker name (an acronym for Buy The Fucking Dip in crypto terminology), but appears to have reverted back to its original BTF.

This is good news as the massively popular and number two ETF by first day trading volume ProShares Bitcoin ETF, which saw a record $1B+ trading volume on its first day is fast reaching its limit. As such, Valkyrie will step in to fill the appetite for cryptocurrency based ETFs. The Valkyrie ETF annual operating expenses are 0.95%.

Other Bitcoin ETFs are planned to be approved soon, but popular opinion is more in favor of spot based ETFs, rather than their futures based counterparts. This precedent is likely to open doors for other cryptocurrency based ETFs also and will bring fresh money into the cryptocurrency space.

The Bitcoin Exchange Traded Fund (ETF) is an investment channel that traces the administration of a special asset or collection of assets. ETFs enable investors to increase their investments without really buying the underlying asset. For those people looking to concentrate only on profits and losses, ETFs give a more manageable option to purchasing and exchanging personal assets.

Further, many traditional ETFs target more open boxes of signatures with something in common such as a focus on sustainability, for example, or assets describing any industry and associated companies, they enable investors to quickly increase their holdings.

Bitcoin ETF can enable fresh money to enter from the traditional finance space, since it reduces the entry barriers by allowing people to invest in this space through platforms and products, they are already familiar with. It exists on stock exchanges, allowing investors to access liquidity. The investors can also be certain about the tax implications and regulatory protection.

First approved ProShares Bitcoin Futures exchange traded fund (ETF) saw a record trading volume exceeding $1 billion on its opening day on the New York Stock Exchange (NYSE) on Oct 19, making it the second largest ETF launch by first day trading volume, dwarfed only by the BlackRock US Carbon Transition Readiness ETF. The first of many ETFs, ProShares Bitcoin ETF is future based rather than spot and trades under the ticker symbol BITO.

Bloomberg senior ETF analyst Eric Balchunas correctly predicted earlier that the first approved Bitcoin ETF had a "legit shot at $1B and top spot". ProShares BITO started from $40 and rose to $41.94 at the close, showing an appreciation of 4.9%. Bitcoin (BTC) itself is having a ride on the news, the largest marketcap crypto-asset is currently changing hands on $64,858, up 15.6% over the past week and establishing a new all time high from the previous $64,800 figure.

There are couple of other Bitcoin ETFs likely to be approved soon, showing that the traditional market has an appetite for cryptocurrency exchange traded funds. This is likely to bring fresh money into the $2.6 trillion + crypto market and several other crypto-assets might have their own ETFs approved soon, after this new precedent. However, there are concerns that a futures based ETF isn't the most optimal and several financial services providers are now working towards getting a spot based ETF approved.

The Bitcoin Exchange Traded Fund (ETF) is an investment channel that traces the administration of a special asset or collection of assets. ETFs enable investors to increase their investments without really buying the underlying asset. For those people looking to concentrate only on profits and losses, ETFs give a more manageable option to purchasing and exchanging personal assets.

Further, many traditional ETFs target more open boxes of signatures with something in common such as a focus on sustainability, for example, or assets describing any industry and associated companies, they enable investors to quickly increase their holdings.

Bitcoin ETF can enable fresh money to enter from the traditional finance space, since it reduces the entry barriers by allowing people to invest in this space through platforms and products, they are already familiar with. It exists on stock exchanges, allowing investors to access liquidity. The investors can also be certain about the tax implications and regulatory protection.

There's good news on the Bitcoin ETF front. Reputed financial services and news company Bloomberg reported on Oct 15 that Securities and Exchange Commission (SEC) has granted tacit approval and Bitcoin ETF is likely to be approved as early as next week. Bitcoin price has responded favorably to the news and the leading cryptocurrency by market capitalization has crossed $60,000 with a 24 hour gain of 5.6%.

Bloomberg has received credible information from people close to the matter, who asked not to be named. No official source has confirmed the Bitcoin ETF approval, but the regulator isn't likely to create hurdles, seeing how the SEC has a pro-Bitcoin chairman at the helm. Four Bitcoin ETF proposals are likely to be approved and can begin trading soon on US exchanges. There's high probability that these ETFs would be futures-based contracts.

Bitcoin ETF approval has been a long time in the marking with the first application coming from the Winklevoss twins back in 2013. Since then, it has been an uphill battle. The regulator's chief concern has been that the market is heavily manipulated, liquidity isn't sufficient and they can't ensure investor protection. This stance appears to have changed as the situation has improved.

The Bitcoin Exchange Traded Fund (ETF) is an investment channel that traces the administration of a special asset or collection of assets. ETFs enable investors to increase their investments without really having the assets pursued by an ETF. For those people looking to concentrate only on profits and losses, ETFs give a more manageable option to purchasing and exchanging personal assets.

Further, many traditional ETFs target more open boxes of signatures with something in common such as a focus on sustainability, for example, or assets describing any industry and associated companies, they enable investors to quickly increase their holdings.

Bitcoin ETF can enable fresh money to enter from the traditional finance space, since it reduces the entry barriers by allowing people to invest in this space through platforms and products, they are already familiar with. It's traded on a stock exchange, allowing investors to access the liquidity. The investors can also be certain about the tax implications and regulatory protection.