How Do Bitcoin ETFs Work and What Are the Pros and Cons?

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How Do Bitcoin ETFs Work and What Are the Pros and Cons?

Coin Ceylon Approved Changed status to publish November 4, 2021
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Pros: Volatility and liquidity

Cons: Institution financed and controlled

Coin Ceylon Approved Changed status to publish November 4, 2021
0

Bitcoin ETF Pros

  • Easy to invest in via the stock market

  • Typically offer straightforward pricing

  • Familiar to those who prefer investing through traditional brokerages

Bitcoin ETF Cons

  • Significantly more expensive than buying Bitcoin directly

  • Don’t offer exposure to actual Bitcoin

  • You can’t sell at any time

  • Futures markets are highly speculative

  • Unlikely to outperform the Bitcoin market Contract lengths negate much of the long-term potential of HODLing

Coin Ceylon Approved Changed status to publish November 4, 2021
0