The US SEC has granted xxxxx

Slide 2 - Following this regulatory nod, the value of Bitcoin surged past $47,500. Other cryptocurrencies also experienced a notable uptick.

Around a dozen companies including BlackRock, Fidelity, and Grayscale, are vying to establish Bitcoin ETFs.

What Are Bitcoin ETFs?

It represents a financial instrument designed to track the price movements of Bitcoin, operating similarly to traditional exchange-traded funds traded on stock exchanges.

It allows investors to gain exposure to Bitcoin's price without directly owning the digital currency.

Instead of acquiring and holding Bitcoin, investors can purchase shares or units of the ETF through their brokerage accounts, like they purchase stocks.

How Do Bitcoins Work?

Consider a Bitcoin ETF named CryptoTracker ETF listed on a stock exchange. The ETF issuer procures a specific quantity of Bitcoin, held as an underlying asset.

Subsequently, the ETF issues shares or units, representing ownership in the fund. Investors can acquire shares of the CryptoTracker ETF through their brokerage accounts, akin to buying shares of a stock.

As Bitcoin's market price fluctuates, the value of the CryptoTracker ETF's shares mirrors these changes.

If and when the investors decide to sell their purchased ETF shares through their brokerage accounts, then the ETF provides them with a value equivalent to the prevailing Bitcoin price at that moment.