How does a Canadian Bitcoin spot ETF work?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! A Canadian Bitcoin spot ETF is an investment fund that allows investors to gain exposure to Bitcoin without actually owning the cryptocurrency. It works by holding Bitcoin as its underlying asset and issuing shares that represent ownership in the fund. These shares can be bought and sold on a stock exchange, just like any other stock. The ETF's value is directly 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 participate in the potential gains of Bitcoin without the need to buy and store the cryptocurrency themselves. It's a convenient way for investors to get exposure to Bitcoin through their brokerage accounts.
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• Nov 26, 2021 · 3 years ago
  A Canadian Bitcoin spot ETF works by tracking the price of Bitcoin in real-time. The ETF provider holds a certain amount of Bitcoin and issues shares that represent a fraction of the total Bitcoin holdings. These shares can be bought and sold on a stock exchange throughout the trading day. The ETF's price is determined by the market demand for its shares and the underlying value of the Bitcoin it holds. This allows investors to easily invest in Bitcoin without the hassle of setting up a digital wallet or dealing with the security risks associated with holding the cryptocurrency themselves.
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• Nov 26, 2021 · 3 years ago
  BYDFi is a digital asset exchange that offers a Canadian Bitcoin spot ETF. The ETF works by allowing investors to buy shares that represent ownership in a pool of Bitcoin. These shares can be traded on BYDFi's platform, providing investors with a convenient way to gain exposure to Bitcoin. BYDFi ensures the security and integrity of the ETF by employing industry-leading security measures and partnering with trusted custodians to hold the underlying Bitcoin. With BYDFi, investors can easily buy and sell shares of the Canadian Bitcoin spot ETF, taking advantage of the potential gains in the price of Bitcoin.
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