A 51% attack is unlikely due to the size of Bitcoin’s network. Due to its popularity, and the scarcity of Bitcoin, it will continue to grow. The computing power required to control the majority blockchain network is high. It will be nearly impossible for a single authority to gain complete control of the network.

In the past, even smaller blockchain networks were subject to 51% attacks. Bitcoin Gold and Bitcoin SV forks, both of which are forks from Bitcoin, have been subject to 51% attacks.

These are some of the demerits of Bitcoin ETF -

• Management Fees
  Investors are charged a significant management fee by financial institutions. A significant holding in a Bitcoin ETF can lead to high fees as the ETF must also pay for the securing of Bitcoins and their exchange. It could reduce your return on investment.

• Volatility
  ETFs could be affected by the volatility of cryptocurrencies such as Bitcoin. ETFs regulate the complexity and mitigate certain risks but they cannot prevent cryptocurrency price fluctuations. If the Bitcoin price drops, your profits will also fall.

• Security risks
  Cybercriminals are able to hack and break ETFs despite the fact that they have multiple layers of security like encryption and cold storage. These incidents, though rare, are not entirely avoidable when it comes to ETFs.

• Less Liquidity
  Bitcoin ETFs may have lower liquidity than other traditional assets such as stocks and bonds. Investors may find it difficult to convert Bitcoin ETFs back into money.

Bitcoin ETFs are very similar to traditional ETFs. They differ from traditional ETFs in that they are linked to the performance Bitcoin futures contracts, rather than traditional assets such as stocks and bonds. ETFs, for example, invest in financial instruments tied to Bitcoin and its underlying future contracts.

Bitcoin futures exchange traded funds (ETFs) are just like regular shares and can be traded on stock markets. However, their prices and performance are determined by the Bitcoin futures contracts that they hold. Users who wish to benefit from Bitcoin price sugars may purchase shares of Bitcoin futures ETF, just as they would any other ETF.

Bitcoin ETFs offer a unique way to invest without having to buy, hold, or monitor Bitcoin directly. These Bitcoin ETFs can be created by large financial institutions and are regulated. Professional fund managers oversee the underlying assets, including Bitcoin future contracts.

They regulate Bitcoin ETFs in real-time based on the market demand. The ETFs are monitored by several regulatory bodies, while also ensuring transparency and protection for investors. Bitcoin ETFs can be a good alternative to traditional investments and cryptocurrencies, as they are closely regulated by experts.