Bitcoin ETFs Are Almost Here
Also Tether, index membership and shredded Banksy.
If you buy shares of an S&P 500 index exchange-traded fund, what does the fund do with your money? There is a technical answer about in-kind creation and authorized participants that I am going to ignore here1 to just say: The fund takes your money and uses it to buy shares of the 500ish stocks in the S&P 500. If you slice open the S&P 500 ETF, you will find a bunch of stocks. It owns stocks. When you own shares of the S&P 500 ETF, you own a portion of the big pot of stocks that it owns.
If you buy shares of a Bitcoin ETF, what does the fund do with your money? Again I will ignore technical creation mechanics. Also of course this is a trick question, you cannot (in the U.S.) buy shares of a Bitcoin ETF, Bitcoin ETFs do not exist. But soon they will, Bloomberg’s Katie Greifeld, Vildana Hajric and Benjamin Bain report: