Bitcoin ETFs vs. Blockchain ETFs

ETFs, or exchange-traded funds, track the price of an asset or group of assets – in our case, a particular digital coin. So what’s the difference between buying a Bitcoin and buying Bitcoin ETF? First, trading the latter is relatively easy: to do so, you just need a brokerage account on a regular exchange. Second, with low to no commissions, it is an easy and cheap way to get exposed to crypto investments without creating a crypto wallet or caring about keeping your crypto assets secure.

In this way, I see Bitcoin exchange-traded funds as a bridge (or, well, a backdoor) that may soon connect mainstream investors with crypto. However, there’s a catch: with regulations out of place, they are still unavailable to the public. As I’m writing this, 9 Bitcoin ETFs are being reviewed by the SEC – which may take some time, as the regulator can extend the process for up to 240 days. However, the investors are hopeful.

What is the alternative in the meantime? You can check out blockchain exchange-traded funds. These ETFs allow you to invest in the technology, not in the currency by owning stocks in companies that implement blockchain – from crypto startups to big blue-chip firms that have embraced decentralization.

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