Investing in a Bitcoin ETF: Instructions, providers, and differences to ETPs and ETCs

Investing in a Bitcoin ETF: Instructions, providers, and differences to ETPs and ETCs

According to a report from bitcoin-2go.de, there is a discussion about the introduction of a Bitcoin ETF and the associated advantages and risks. The opportunities and advantages of a Bitcoin ETF are the regulated and easy way for investors to participate in the price development of Bitcoin. However, due to guidelines, there are no pure ETFs in Germany that invest 100% in Bitcoin. Instead, crypto ETPs and ETCs are sensible alternatives to the Bitcoin ETF. Certain neobrokers already enable investments in these alternatives.

The current applications for a Bitcoin ETF are listed by various providers in alphabetical order. Various issuers such as 21Shares & ARK, Bitwise, BlackRock, Fidelity, Franklin Templeton, GlobalX, Invesco & Galaxy, Valkyrie, VanEck and Wisdomtree have submitted applications for a Bitcoin ETF. There are also two other applications that provide for the conversion of existing products into spot ETFs. The SEC's decisions on these filings may have a material impact on the perception of Bitcoin as an asset class.

In order to buy a Bitcoin ETF, you need a depot with a neobroker. It is currently not possible to purchase a Bitcoin ETF directly, but neobrokers such as Scalable Capital and Finanz.net Zero already offer crypto ETPs for purchase. These ETPs can also be purchased through a savings plan.

A Bitcoin ETF is a financial instrument that allows investors to invest in Bitcoin without having to directly purchase the digital currency. It is traded on regular exchanges and provides an accessible way for investors to participate in the Bitcoin market.

The Bitcoin ETF and Bitcoin ETP are explained in comparison to a Bitcoin ETC. A Bitcoin ETF is a special fund and offers protection for investors in the event of the capital management company becoming insolvent. Bitcoin ETCs, on the other hand, are bonds and represent raw material claims.

The introduction of a Bitcoin ETF has the potential to make the Bitcoin market accessible to a broader range of investors and strengthen the perception of Bitcoin as an asset class. However, it remains to be seen what the regulatory authorities' decisions will be in this regard.