1. What is a Bitcoin ETF?
A Bitcoin ETF is a stock-like fund that allows one to invest in Bitcoin without physically holding the cryptocurrency.
2. Why choose a Bitcoin ETF for long‑term investing?
ETFs provide regulated exposure, simpler tax treatment, and do not require managing digital wallets.
3. How do fees affect long‑term ETF returns?
Lower fees translate into a higher investment amount that remains invested, thereby increasing long-term returns.
4. Is liquidity important for Bitcoin ETFs?
Definitely, increased liquidity leads to easier buy/sell transactions and tighter trading spreads.
5. Can I hold Bitcoin ETFs in retirement accounts?
In many countries, Bitcoin ETFs can be held in qualified retirement or tax-advantaged accounts, but the rules vary by region.