Cryptocurrency etfs

Wanted to get the communities thoughts on crypto etfs and their permissibility. More specifically have been thinking about investing in GBTC.
Are these etfs shariah compliant or any resources related to that??

1 Like

I’m not aware of any resources on this topic. Perhaps Shaykh @Joe or Shaykh @umerkhan can weigh in on any shariah parameters that should be considered.

Out of curiosity—why would you want to invest in a Bitcoin ETF instead of Bitcoin directly? Just like any other ETF, it would be subject to management fees and available only during market hours. You also won’t be able to transact with it since you won’t have access to the underlying asset.

Attaching Shaykh @Joe’s article on Bitcoin/cryptocurrencies for reference.

Thank you for the link to the article. Very insightful.

The reason I was considering investing in etfs was because my broker (Charles Schwab) does not allow me to trade Bitcoin. Did not want to keep my money across different brokers and platforms so was looking into etfs. But your point about management fees is definitely valid.

Also tax benefits like ISAs in the uk.

Investing in a crypto ETF likely would give you access to diversifying into the sector without the fees and back and forth of holding actual cryptocurrency. also because you would be actively managed you would hope that the fund manager would be able to avoid some of the larger dips in the market and take advantage of them.
while I personally do not know of any tickers for cryptocurrency ETFs I would imagine that for the most part institutions would not be taking stakes in extremely volatile or experimental and new cryptocurrencies, especially those with lower market caps and questionable mechanisms for staking and yield sharing.
if you have any tickers and would like me to take a look at them drop them here in this thread and I’ll give you my thoughts on them.