Research Study
Channels for Exposure to Bitcoin Revisited
An updated look at different options for bitcoin exposure
by Fidelity Digital Assets
February 29, 2024 • 22 min read
Background
In July 2021, we worked with Ark Invest to highlight some of the most common investment vehicles to get bitcoin exposure. Since then, investor interest in bitcoin has continued to grow. However, many U.S. institutional investors have been limited to derivative markets and other channels for exposure that are compliant but not without trade-offs.
After years of efforts, U.S. investors can now get exposure to bitcoin via a spot bitcoin exchange-traded product (ETP) directly in many investment accounts.
In this updated piece, we discuss the benefits and considerations of different channels for bitcoin exposure, including third-party custody, passive single-asset funds, futures contracts, actively managed funds, futures-based exchange traded funds, and most recently, spot exchange-traded products.
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