What is a crypto ETF? How it differs from owning crypto
By SendPay Business · · 2 min read
An ETF (exchange-traded fund) is a fund you can buy and sell on a stock exchange like a share. A crypto ETF tracks the price of a coin such as bitcoin, so investors get exposure to its price without holding the coin themselves.
Spot and futures ETFs
A spot ETF holds the actual coins with a custodian. A futures ETF holds contracts that bet on the future price instead. In the US, the first spot bitcoin ETFs were approved in January 2024, and spot ether ETFs followed in July 2024.
ETF or owning the coin
- An ETF is bought through a normal investment account.
- The fund handles storage, so there is no private key to lose.
- You can't send ETF shares to a crypto wallet or spend them as crypto.
- ETFs charge a yearly management fee on top of trading costs.
The risks
An ETF still rises and falls with the price of the coin, which can move sharply. Which crypto products ordinary investors can buy also differs from country to country, so check the local rules.
Where SendPay fits
SendPay platforms let your customers buy, sell and hold crypto itself under your own brand, with assets held with regulated partners and a trading fee you set. SendPay does not offer ETFs.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.