1. What Is a Crypto ETF?
An exchange-traded fund (ETF) is a fund that trades like a stock on a securities exchange. It provides indirect exposure without requiring you to hold coins directly.
2. Spot ETFs vs. Futures ETFs
📊 Comparison
Spot ETF:
• Holds actual Bitcoin
• Tracks the price closely
• Fees cited: 0.2–0.5% annually
• Examples: iShares IBIT and Fidelity FBTC
Futures ETF:
• Holds Bitcoin futures contracts
• Incurs rollover costs
• Can have tracking error
• Example: ProShares BITO
3. Advantages and Disadvantages
- Advantages: Invest through a brokerage account, professional custody, and convenient tax handling
- Disadvantages: Trading limited to market hours, ongoing fees, and no direct coin ownership
4. ETFs vs. AI Trading
ETFs provide straightforward holding exposure, while AI trading actively seeks returns. The guide suggests holding part of an allocation long-term in ETFs and using AI signals as a reference for another part.