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    Posted: 22 Mar 2019 08:37 AM PDT

    Bitcoin ETFs and How They Work - Guide

    Posted: 22 Mar 2019 09:45 AM PDT

    Hello Reddit, We released an all-you-need-to-know guide on Bitcoin ETF's. We would love any feedback. Here is a small excerpt from the article.

    How do Bitcoin ETFs Work? Now that we understand how normal ETFs work, we can turn our attention to Bitcoin ETFs.

    1. ETFs that Physically Hold Bitcoin This type of ETF is almost identical compared to the ETF model we've described.

    The only difference is that APs have the option of sending over baskets of cash instead of Bitcoin. This is simply for convenience as many APs don't want to purchase Bitcoin and hold on to it themselves.

    So when the AP sends over a basket of cash, the ETF provider trades the cash for Bitcoin. Then the provider returns ETF shares that are of equal value, less transaction fees, to the AP.

    We would really appreciate it if you check it out Here

    submitted by /u/Usedaproxy
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