What is a spot bitcoin ETF?

Yahoo Finance anchor Brad Smith explains what a spot bitcoin ETF is and how it differs from other investments.
#bitcoin #crypto #youtube

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Let’s delve into this with Yahoo finance’s own Brad Smith to tell us what the spot Bitcoin ETFs are and what they mean for the market hey Brad hey Melle well yes it’s still an ETF where you’ve already had many commonly traded assets or baskets of Securities that make up

ETFs in the past but what is the purpose for this this one specifically in Bitcoin the purpose for this one is where a fund would hold Bitcoin with the investment value proposition being for the shares that they are then l ing publicly to reflect the performance of

The value of a Bitcoin at a more cost effective and commonly known trading mechanism than buying cryptocurrency so really it just takes us back to the question of how an ETF traditionally is created and what makes this one just slightly different because of the holding a much more

Riskier asset or commonly thought of as that in Bitcoin well how an ETF is created you’ve got an ETF manager they basically file for these plans with the SEC we’ve got multiples of these and the SEC reviewing them for now years at this point and then the sponsor they’re

Looking for some type of agreement and an authorized participant a market maker the participants they acquire typically stock shares previously but in this case they would have Bitcoin that they would be able to put into a fund and then ultimately they would then list that ETF

Um and put those ETF shares up in the public market and so they would trade just like regular stock but it would be a basket of stocks previously in this case it would be a basket of cryptocurrency Bitcoin is most prominently the uh submission that we’ve

Seen to this point so to try and simplify this at the end of the day the ETF is still going to be listed the same it’s really just the asset that is held in the fund and we’ve got multiple funds now that are putting their ETF listings

Forward so that people can simply just go into registered or customary brokerage and still place a trade the same way they would if they were buying a similar or just a single stock at the end of the day