Bitcoin ETF

A bitcoin exchange-traded fund is a fund listed on a stock exchange that gives investors exposure to bitcoin's price through ordinary brokerage accounts. A spot bitcoin ETF holds actual bitcoin with a custodian. A futures ETF holds bitcoin futures contracts instead.

The US Securities and Exchange Commission approved the first US spot bitcoin ETFs on 10 January 2024, and they began trading the next day, with issuers including BlackRock and Fidelity. Daily flows into and out of these funds are now closely watched as a measure of institutional demand.

ETFs are convenient and handled by regulated custodians, but you pay an annual expense ratio, cannot withdraw the bitcoin, and can only trade during exchange hours.