Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Because ETFs are bought and sold similarly to stocks or other asset classes they can be used to make profits. However they do not guarantee profits. A loss can be incurred from an ETF trade just as it can from any other type of trading. So it is important to understand the ETF you’re buying before investing. Some ETFs use short selling or leverage to try and generate better returns. This also increases the risks involved in trading these ETFs.
Trading ETFs is a perfect way for a beginner to become familiar with the markets and to begin their trading career. This is because ETFs feature low costs, excellent liquidity, diversification, a broad choice of investments, and a low initial capital requirement. Beginners can use some of the most popular trading strategies to get started, and can focus on any industry, asset type, or market sector they like. There are even inverse ETFs that can be used to mimic shorting a stock, but with fewer risks.
Trading ETFs has become popular because it combines the ease of stock trading with the diversification found in mutual funds. They can be bought and sold in the same way as any stock, but because they mirror the composition of some index or other sector they are a useful way to capitalize on larger macro trends in the market. ETFs make it possible to speculate on the broader markets, such as the S&P 500. They can also be used in commodity trading, where using futures can be costly and require large upfront capital.