Money For the Rest of Us

Now Should You Buy Bitcoin? The Investment Case for the New Spot Bitcoin ETFs

Jan 17, 2024

Bitcoin expert guest_name_1 discusses the approval of spot Bitcoin ETFs, regulation of Bitcoin, convenience of fiat currency vs Bitcoin, and the investment case for Bitcoin ETFs.

27:09

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Episode notes

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Quick takeaways

New spot Bitcoin exchange-traded products provide a different way to invest in a Bitcoin ETF.

The SEC's approval of Bitcoin ETFs does not signal approval of other crypto assets as ETFs.

Deep dives

Bitcoin ETFs: Negative Roll Yield and Performance

When Bitcoin futures ETFs were introduced, they invested in Bitcoin futures contracts and suffered from negative roll yield. This is because the futures contracts were priced higher than the current Bitcoin price, resulting in underperformance. For instance, the ProShares Bitcoin ETF experienced a total loss of 39% due to negative roll yield and an expense ratio of 0.9%. However, now there are new spot Bitcoin exchange-traded products that actually own Bitcoin, providing a different way to invest in a Bitcoin ETF.

Introduction

3min

Approval of Spot Bitcoin ETFs, Grayscale Lawsuit, and SEC's Stance on Crypto ETFs

2min

Regulation of Bitcoin, Lawsuit Against Coinbase, and Advantages of ETFs

3min

Bitcoin ETFs and SEC's Perspective

8min

Convenience of Fiat Currency vs Bitcoin

5min

Bitcoin as a Transactional Currency and Store of Value

7min

The Investment Case for Bitcoin ETFs

2min

We explore reasons for buying Bitcoin using one of the new Bitcoin ETFs. We also consider the risks.

Topics covered include:

Why the SEC finally decided to approve spot Bitcoin ETFs
What are the fees and structure of these new Bitcoin ETFs
How Bitcoin is similar and different from the fiat money system
Where Bitcoin fits in an investment portfolio

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Show Notes

Statement on the Approval of Spot Bitcoin Exchange-Traded Products - SEC

Coinbase at the Center of Bitcoin ETF Draws Envy and Risks - Bloomberg

Federal Reserve Balance Sheet

Related Episodes

362: Should You Invest in a Bitcoin ETF?