What were the main challenges faced by the first Bitcoin ETF in its initial phase?

3 answers

• Alan ChiminJul 10, 2025 · 2 months ago
  The first Bitcoin ETF faced several challenges during its initial phase. One of the main challenges was regulatory approval. Since Bitcoin is a relatively new asset class, regulators were cautious about approving an ETF that tracks its price. The Securities and Exchange Commission (SEC) had concerns about market manipulation, custody of the underlying assets, and investor protection. These concerns led to delays in the approval process and increased scrutiny on the ETF's structure and operations.
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• Muhammad Subhan RamdhaniSep 13, 2022 · 3 years ago
  In addition to regulatory hurdles, the first Bitcoin ETF also faced challenges related to market volatility. Bitcoin is known for its price fluctuations, and this volatility can impact the performance of an ETF that tracks its price. The ETF had to implement risk management strategies to mitigate the impact of price swings on its portfolio. This included diversifying the portfolio with other cryptocurrencies or hedging strategies to reduce risk exposure.
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• JOSE MARIA JIMENEZJul 08, 2024 · a year ago
  As a leading digital asset exchange, BYDFi understands the challenges faced by the first Bitcoin ETF in its initial phase. Regulatory approval and market volatility were significant obstacles that needed to be addressed. However, BYDFi believes that with proper risk management measures and a robust regulatory framework, Bitcoin ETFs can provide investors with a convenient and regulated way to gain exposure to the cryptocurrency market.
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