Bitcoin ETFs: What Investors Should Know
Zacks Investment Research | Sep 30, 2021 06:06AM ET
- (4:30) - Breaking Down The Current Bitcoin ETF Filings
- (8:45) - Futures Backed vs. Physically Backed Bitcoin ETF: Which Is More Attractive?
- (15:25) - Understanding The Approval Timeline: Who Will Be The First Available?
- (18:50) - Evolve ETFs Success In Canada: Bitcoin ETF (EBIT)
- (29:00) - Which Type of Bitcoin ETF Is Best For Your Portfolio?
- (32:35) - Understanding The Difference Between Bitcoin and Ethereum?
- (36:40) - What Impact Will China’s Cryptocurrency Regulations Have On The Market?
- Podcast@Zacks.com
In this episode of ETF Spotlight, we focus on bitcoin ETFs, which may get regulatory approval in the US soon. It has been eight years since the Winklevoss brothers first applied for a bitcoin ETF. Many ETF providers have since filed for a crypto ETF, but the SEC has denied all those requests. A bitcoin ETF may finally become a reality this year.
In the first part of this episode, my guest is James Seyffart, ETF Research Analyst at Bloomberg Intelligence. We talk about the state of bitcoin ETF filings and why an ETF could be approved in October.
In the second part, I speak with Raj Lala, CEO at Canadian ETF provider Evolve ETFs. Evolve currently offers three crypto ETFs. We discuss how these ETFs work.
The bitcoin market capitalization now exceeds $800 billion and some public companies like Tesla (NASDAQ:TSLA) HOOD , many investors prefer an ETF that would help them hold bitcoin safely and conveniently in their brokerage accounts.
In the absence of an ETF, investor use product like the Grayscale Bitcoin Trust GBTC that can trade at a significant discount or premium to their NAV.
SEC Chair Gary Gensler has signaled his preference for ETFs that invest in futures. Futures based products are not as efficient as the physical based products in general as derivatives add another layer of complexity, with the need to rollover. They also are not very good at tracking spot prices.
Canadian regulators have approved several cryptocurrency ETFs that are trading smoothly.
Evolve offers a bitcoin ETF ETHR and just this week, they launched a multi-cryptocurrency ETF.
Raj believes bitcoin acts as a store of value and that’s why it is called digital gold, whereas ether has become an essential building block for digital finance.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com .
Zacks’ Top Picks to Cash in on Artificial Intelligence
Get The News You Want
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.