Bitcoin ETFs are here.

They’re not quite what you might think though. We walk through the details of how these beasts are structured and what you need to know before buying them in this week’s podcast episode.

 

Show Notes

[02:09] Recent Developments – Grant starts the discussion with a review of how and why cryptocurrencies grew in popularity over the last few years.

[04:37] Diversity of ETFs – How the diverse nature of the ETFs allowed them to utilize cryptocurrencies and the challenges associated with getting a cryptocurrency involved in a mainstream investment vehicle.

[08:12] Newcomers to the Market – Grant reviews a couple of newly introduced ETFs that are backed by BTC and the pros and cons of investing in these compared to a traditional ETF.

[10:48] Futures Contracts – How the futures markets work and how they relate to the way crypto-backed ETFs function.

[14:36] Obscure Costs – Because of the way BTC-backed ETFs are connected to futures contracts, there are some costs involved in the process that may go unnoticed. Grant explains what investors need to keep in mind about the costs of the Bitcoin ETFs.

[16:41] Leveraged ETFs & Mutual Funds – Grant shares his thoughts on the functionality of the two investment vehicles and the similarities they share with Bitcoin ETFs.

[20:10] Bond Funds – Grant explains the difference between how bond funds operate versus investment vehicles based on futures contracts.

 

 

Resources

The Wall Street Journal – ETFs Are a Bad Way to Bet on BTC:

wsj.com/articles/etfs-are-a-bad-way-to-bet-on-btc-11635261745

 

The Wall Street Journal – BTC ETF’s Success Could Come at Fundholders’ Expense:

wsj.com/articles/bitcoin-etfs-success-could-come-at-fundholders-expense-11635080580