Test Your Knowledge
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1. What is the main advantage of investing in a Bitcoin ETF?
A) It allows investors to directly hold Bitcoin without any intermediary
B) It offers exposure to Bitcoin without needing to purchase or store the cryptocurrency directly
C) It eliminates all risks associated with Bitcoin
D) It guarantees high returns from Bitcoin’s price movements
2. What is the key difference between a Bitcoin Spot ETF and a Bitcoin Futures ETF?
A) Bitcoin Spot ETFs hold Bitcoin directly, while Bitcoin Futures ETFs derive their value from Bitcoin futures contracts
B) Bitcoin Spot ETFs invest in Bitcoin futures, while Bitcoin Futures ETFs directly hold Bitcoin
C) Bitcoin Spot ETFs are more volatile than Bitcoin Futures ETFs
D) Bitcoin Spot ETFs allow investors to speculate on future Bitcoin prices, while Bitcoin Futures ETFs hold the actual cryptocurrency
3. What factor should investors consider before investing in a Bitcoin ETF?
A) Bitcoin ETFs are entirely risk-free investments
B) The regulatory framework governing Bitcoin ETFs is the same worldwide
C) Market volatility, management fees, and personal investment goals
D) Bitcoin ETFs can only be purchased by institutional investors