Bitcoin ETF(by Vinamrata Chaturvedi) - 趙永祥的數位歷程檔

A Bitcoin ETF is an exchange-traded fund comprised of bitcoin or assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. Theoretically, bitcoin is purchased by the company, securitized, and sold or traded on an exchange. However, the Security and Exchange Commission continues to reject these proposals; there is no cryptocurrency ETF directly representing an underlying coin.

Currently, the underlying assets within Bitcoin ETFs are linked to Bitcoin futures contracts traded on the Chicago Mercantile Exchange.

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Why is 'Bitcoin ETF' the Term of the Day?

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Charles Schwab launches a crypto-related ETF on the New York Stock Exchange today, following similar launches of new crypto-related funds by other financial companies this year.

Instead of directly investing in crypto, the Schwab Crypto Thematic ETF (STCE) offers exposure to the crypto ecosystem through companies that use digital assets in their business operations. This includes those companies that hold digital assets as investments, or through those developing blockchain applications, among others.

The fund will not hold cryptocurrencies directly, as the U.S. Securities and Exchange Commission has denied many spot Bitcoin ETF proposals. The financial watchdog believes the market needs better investor protection and prevention measures against market manipulation before it is able to approve a spot crypto Bitcoin ETF.

For investors hoping to expand their exposure to cryptocurrencies it’s important to note that Charles Schwab’s crypto-themed ETF is different from a Bitcoin ETF. The former provides exposure to companies using digital assets in their business activities, while the latter is a basket of Bitcoin-related assets offered on traditional exchanges by brokerages.

-Vinamrata