Test Your Knowledge
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Question 1:
What is the main purpose of a Bitcoin ETF?
A. To provide a regulated method for investors to trade the price of Bitcoin on traditional financial markets.
B. To give investors complete control over their Bitcoin holdings.
C. To allow investors to speculate on Bitcoin's future price without holding the cryptocurrency.
Question 2:
What is the difference between a Bitcoin Spot ETF and a Bitcoin Futures ETF?
A. A Bitcoin Spot ETF directly holds the underlying asset, while a Bitcoin Futures ETF derives its value from futures contracts.
B. A Bitcoin Futures ETF holds the underlying asset, while a Bitcoin Spot ETF derives its value from futures contracts.
C. Both Bitcoin Spot ETFs and Bitcoin Futures ETFs directly hold the underlying asset.
Question 3:
Why are Bitcoin ETFs important for the cryptocurrency market?
A. They allow investors to trade Bitcoin without needing to purchase the cryptocurrency directly.
B. They provide a decentralized way to invest in Bitcoin.
C. They completely eliminate market volatility.