For cryptocurrency enthusiasts and investors who want to take advantage of the growing popularity of exchange traded funds (ETFs), the possibility of tracking bitcoin ETFs is the best opportunity for this connection. However, in the process of trying to launch the first bitcoin ETF, there are more and more pains and problems.

The reason is that Bitcoin is the world's largest cryptocurrency by market value, but it is still largely unregulated. In addition, the US Securities and Exchange Commission (SEC) is reluctant to open ETFs focusing on new and largely untested cryptocurrency markets to the public.

Before studying the potential benefits and risks of Bitcoin ETF, let's take a step back and review what Bitcoin ETF is and how it works. ETF is an investment tool to track the performance of a specific asset or asset group. ETF allows investors to diversify their investments without actually owning assets.

For individuals who only want to pay attention to gains and losses, ETF provides an easier choice for buying and selling personal assets. Because many traditional ETFs aim at a larger name basket with similarity—for example, stocks that focus on sustainable development or represent the video game industry and related businesses—they allow investors to easily diversify their investments.