A bitcoin ETF is an exchange-traded fund that specifically tracks the price of the leading cryptocurrency and allows traders to purchase or sell the security on a stock exchange throughout the day.
ETFs are regulated traditional financial products and can be bought through a number of retail-friendly mobile trading apps, including Robinhood, Trading212, TD Ameritrade and Fidelity.
Seven years on, however, the SEC still has yet to approve a bitcoin ETF despite dozens of proposals from multiple companies including a second Winklevoss Twin ETF in 2018, one from Bitwise, five from Direxion, two from GraniteShares and many more.
Things may be about to change, however, as Canada’s financial regulator, the Ontario Securities Commission are both physically settled ETFs and have applied to be listed on the Toronto Stock Exchange.
With the arrival of a bitcoin ETF in North America, many are optimistic the SEC will follow suit soon in the United States especially if Gary Gensler, former commissioner of the Commodity and Futures Commission and MIT blockchain tutor, is confirmed by the U.S.
All you need in order to begin investing in ETFs is to set up an online brokerage account or download one of the many mobile trading apps.