Bitcoin ETFs: What they are and how they work
Bitcoin ETFs are investment vehicles that track the value of Bitcoin. There are two types: spot ETFs that hold actual Bitcoin and futures ETFs that track the price of Bitcoin through futures contracts. Spot ETFs provide a simple way to trade BTC and contribute to legitimizing cryptocurrencies. They also attract more capital and increase liquidity, potentially leading to increased price stability. However, spot ETFs will face volatility and fluctuations similar to BTC. Their approval is a milestone for Bitcoin's mainstream adoption.