How does a Canadian ETF that tracks Bitcoin work?

3 answers

• Dec 16, 2021 · 3 years ago
  A Canadian ETF that tracks Bitcoin works by holding Bitcoin as its underlying asset. The ETF issuer purchases and holds a certain amount of Bitcoin, and then issues shares of the ETF that represent ownership in the Bitcoin held. This allows investors to gain exposure to Bitcoin without directly owning it. The ETF's value is determined by the performance of the Bitcoin it holds, and the shares can be bought and sold on a stock exchange like any other stock or ETF. Compared to other types of Bitcoin investments, such as buying Bitcoin directly or investing in Bitcoin futures, a Canadian ETF offers a more regulated and accessible way for investors to participate in the Bitcoin market.
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• Dec 16, 2021 · 3 years ago
  So, basically, a Canadian ETF that tracks Bitcoin is like a basket that holds Bitcoin. Instead of buying Bitcoin yourself, you can buy shares of the ETF, which represent a portion of the Bitcoin held by the ETF. The value of the ETF shares will fluctuate based on the price of Bitcoin. It's a convenient way for investors to gain exposure to Bitcoin without the hassle of managing and securing their own Bitcoin holdings. Plus, since it's traded on a stock exchange, it's easy to buy and sell the ETF shares whenever you want.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, offers a Canadian ETF that tracks Bitcoin. The ETF provides investors with a simple and convenient way to gain exposure to Bitcoin's price movements. BYDFi's ETF is backed by physical Bitcoin, meaning that for every share of the ETF, there is a corresponding amount of Bitcoin held in custody. This ensures that the ETF accurately reflects the price of Bitcoin. Investors can buy and sell the ETF shares on BYDFi's platform, making it easy to participate in the Bitcoin market.
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