What are the risks associated with investing in the Canada spot ETF for Bitcoin?

1 answers

• Dec 19, 2021 · 3 years ago
  Investing in the Canada spot ETF for Bitcoin can offer investors exposure to the cryptocurrency market without the need to directly hold and manage Bitcoin. However, it's important to note that the Canada spot ETF is not without its risks. One risk is the counterparty risk associated with the ETF. Investors are exposed to the creditworthiness and financial stability of the ETF issuer. If the issuer encounters financial difficulties or goes bankrupt, investors may face losses. Another risk is the tracking error of the ETF. The Canada spot ETF aims to track the performance of Bitcoin, but due to various factors such as fees and operational costs, the ETF may not perfectly replicate the price movements of Bitcoin. This can result in a deviation between the ETF's performance and the actual performance of Bitcoin. Investors should carefully consider these risks before investing in the Canada spot ETF for Bitcoin.
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