If you pay attention to the cryptocurrency markets, you may have heard about the various Bitcoin exchange-traded fund (ETF) applications filed with the United States Securities and Exchange Commission. You may have also heard that every single application has thus far been rejected, but this does not mean that you cannot trade Bitcoin ETFs in North America.

In mid-February, financial regulators in Canada granted approval to the Purpose Bitcoin ETF, which is actively trading on the Toronto Stock Exchange. It only took a couple of trading sessions for this BTC trading security to reach a market capitalization greater than $330 million, and it is expected to reach $1 billion over the next couple of months. If you prefer to access the cryptocurrency markets from a third-party option that trades just like a stock on Wall Street, check with your retail broker to see if this ETF is available.

Cryptocurrency ETFs have been trading on European markets for a couple of years. These funds are different from some of the other fund offerings currently being traded. In essence, these ETFs seeks to provide investors with a diversified portfolio through investments and trading platforms. Investors may choose to invest in the Bitcoin ETF funds simply based on their price action and the market's trend direction as it continues to turn bullish. The risk is about the same as on the major cryptocurrency exchange platforms such as Binance, but you will not be directly investing in a currency pair.

American investors who are more conservative about their market positions will probably wait until the SEC approved a Bitcoin ETF that trades on Wall Street, but they already have an option called the Grayscale Investments GBTC Fund, which is an exchange-traded note (ETN) focused on digital currencies. Unlike ETFs that track the market performance of underlying assets, ETNs track the performance of a debt instrument. In other words, ETNs are more like bonds and ETFs are essentially mutual funds that can be traded on Wall Street.

The aforementioned cryptocurrency ETN is not regulated by the SEC; instead, the regulatory agency is the Office of the Comptroller of the Currency, so that is where your due diligence should take place. As for which instrument is riskier, keep in mind that ETNs cannot be redeemed like bonds, but they can be traded.