Cryptocurrency ETFs Qué son Dónde existen

Cryptocurrency ETFs allow gaining exposure to digital assets such as bitcoin or ether without the need to buy and custody them directly. They are traded on the stock exchange through a financial intermediary, similarly to other exchange-traded products.

However, not all vehicles that the market calls “cryptocurrency ETFs” legally have the structure of a traditional exchange-traded fund. Depending on the country, they can take the form of an ETF, ETP, ETN, or trust. Therefore, in addition to knowing the asset to which they offer exposure, it is important to review the legal structure of each product.

How They Work

There are two main structures. Spot or cash products directly hold the underlying cryptocurrency in custody and seek to track its price, minus fees and other expenses. Futures-based products, on the other hand, invest in derivative contracts on the cryptocurrency. In this case, the performance may differ from the behavior of the asset due to, among other factors, the cost of rolling over the contracts.

There are also products that group several cryptocurrencies and others with leveraged or inverse exposure. The latter have more complex characteristics and are generally aimed at short-term strategies. The investor must distinguish between direct exposure to the asset, exposure through derivatives, and exposure to a combination of assets.