Hello Friends ,
I think all of you might be well so if so then it's great. I am also well that is why i am also going to tell you about a big news about the BITCOINS future. I will explain what is ETF?
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
WHAT IS IMPORTANCE OF ETF FOR BITCOIN?
Bitcoin ETFs have been a dream in the crypto community for a very long time. These ETFs may be a good signal for the cryptocurrency market that is in a downtrend since January 2018.
In August the 10 the U.S. Securities and Exchange Commission will have ready a decision on whether a Bitcoin ETF will be available or not. If the answer is positive, the crypto market could start a new bull run and reach new all time highs.
Our crypto market has about 240 Billion market cap and price of bitcoin is $6500 at this market cap and we all know our market went to 800 Billion market cap in 2017 end and that time bitcoin went to $19500 So its very simply calculation if we want to see our bitcoin at $65000 then total market cap must be about 3 trillion which can only happen if Bitcoin ETF get approved by SEC as it will result in flood of money into crypto when traders will be able to trade with single click from there brokerage account to buy sell bitcoin .
CEO Jan van Eck commented on the matter:
We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory proses. A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.
If the SEC provides an approval for the ETFs, it means that there will be a green light to mainstream investment in altcoins as well. This decision could help trillions of dollars enter the crypto market and help the price of Bitcoin find a new all time high.
Trillion dollar funds awaiting on the curb
Now, the SEC is asking for comments from the interested people. In the past, several companies have tried to list Bitcoin ETFs but to no avail. The concerns regarding the high volatility of the market along with the liquidity have been the primary reasons for authorities’ reluctance to allow them.
It has been revealed by the sources that August 10 is the proposed date when the SEC will make their decision on the future of these Bitcoin ETF and by extension the entire cryptocurrency market.
WHY ETF WILL BE APPROVED
CUSTODIAL SERVICES
Traditional investors have mostly refrained from cryptocurrencies largely because they are investors — not Trezor-clutching ‘hodlers.’
Luckily, custodial services are now becoming a thing for institutional investors, with Coinbase and the Swiss Stock Exchange being just some recent big names who will now offer custodial services for their clients.
REGULATORY CLARITY
One major reason for last year’s rejection was that Bitcoin markets were “unregulated.”
“Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated,” it explained.
But later that year, Bitcoin Futures began trading as big investment banks such as Goldman Sachs and JP Morgan started dipping their toes in cryptocurrencies.
Last month, the SEC itself provided further clarity when it announced that Bitcoin, Ether, and other decentralized cryptocurrencies will not be classified as securities. Meanwhile, the IRS has even launched an international effort to catch tax evaders who use cryptocurrency.
BITCOIN ETF EXPLANATION VIDEO