Q&A with Apricot: Is Buying Bitcoin ETFs the Same as Buying Bitcoin?

The SEC’s recent approval of Bitcoin ETFs created a lot of buzz, but are they the same as just buying Bitcoin itself? Let’s clear things up:

So, are they the same?

No. Let’s explore the key differences:

Owning the asset:

• Bitcoin: When you buy Bitcoin, you directly own the digital asset. You control the private keys and are responsible for storing and securing it yourself.
• Bitcoin ETFs: You don’t own the underlying Bitcoin with an ETF. You own shares in a fund that holds Bitcoin, similar to owning stock in a company that has invested its assets in Bitcoin.

Trading & Accessibility:

• Bitcoin: You need an account on cryptocurrency exchange to buy and sell Bitcoin, which can be less familiar for traditional investors.
• Bitcoin ETFs: You can trade them on regular stock exchanges, just like regular stocks (such as Apple, Microsoft, Tesla stocks) or mutual funds. This makes them more accessible to a wider range of investors.

Regulation & Risk:

• Bitcoin: The crypto market is largely unregulated, which can be risky due to potential scams, hacks, and price volatility.
• Bitcoin ETFs: They are subject to stricter regulations and oversight, potentially offering more security and protection for investors. However, as with any investment, Bitcoin ETFs are subject to market fluctuations and carry inherent risks.

Overall:

• Bitcoin: Offers direct ownership and control in a market that is largely unregulated. It comes with higher complexity of trading & accessibility.
• Bitcoin ETFs: Provide easier access and potentially more security. They don’t offer direct ownership of Bitcoin.

Interested in adding spot Bitcoin ETFs to your portfolio?

Now you can buy spot Bitcoin ETFs (ARKB, FBTC, BTCO, HODL) using the Apricot app.* Download it for free from the App Store and Google Play.

It’s important to remember that as with any investment, Bitcoin ETFs are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this document are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific stock. The past performance of stocks mentioned in this document is not indicative of future results.