How do Bitcoin ETF holdings work?

3 answers

• Dec 25, 2021 · 3 years ago
  Bitcoin ETF holdings work by allowing investors to buy shares of the ETF, which represents ownership of a certain amount of Bitcoin. The ETF holds the actual Bitcoin and manages the custody and security of the holdings. The price of the ETF shares is typically tied to the price of Bitcoin, so when the price of Bitcoin goes up, the value of the ETF shares also increases. This allows investors to gain exposure to Bitcoin without directly owning it.
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• Dec 25, 2021 · 3 years ago
  Bitcoin ETF holdings work like a basket of Bitcoin. When you buy shares of a Bitcoin ETF, you are essentially buying a piece of that basket. The ETF manager is responsible for buying and holding the actual Bitcoin on behalf of the investors. The price of the ETF shares is determined by the market demand and supply, as well as the performance of the underlying Bitcoin holdings. It's important to note that the ETF shares can trade at a premium or discount to the actual value of the Bitcoin holdings.
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• Dec 25, 2021 · 3 years ago
  Bitcoin ETF holdings work in a similar way to other ETFs. The ETF manager creates and redeems shares of the ETF based on the demand from investors. When investors buy shares, the ETF manager uses the funds to buy Bitcoin and holds it in a secure custodial wallet. The ETF shares can be bought and sold on the stock exchange, allowing investors to easily gain exposure to Bitcoin without the need to manage the actual holdings themselves. BYDFi is a digital asset exchange that offers Bitcoin ETFs, providing investors with a convenient way to invest in Bitcoin.
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