Congratulations to all crypto enthusiasts as the S.E.C finally approved the Bitcoin ETF yesterday night.
This is massive news and came at no better time than a year when we will be having the Bitcoin halving in a couple of days time. After several deliberations, sittings and setbacks, the S.E.C security exchange commission finally approved the spot Bitcoin ETF even after a false news was released on their x social media site which they debunked on Tuesday and said they will investigate the incident It still didn't stop the approval.
What's an ETF or Bitcoin ETF? This is the question some may have right? I gotch yah!
So an ETF in full is what we call an exchange traded fund. Is an investment fund that tracks the price of an underlying asset or index, so the Bitcoin ETF is an exchange traded fund which tracks the value of Bitcoin and is traded on the traditional market exchanges. ETFs are available for several assets and industries, ranging from commodities to currencies. So the Bitcoin ETF will work the same way as the price of the share which will be traded on market exchanges like NYSE or TSX, as the price of Bitcoin fluctuates so also will the price of the shares of the Bitcoin ETF move. The distinction here will be the fact that one wouldn't have to register with any cryptocurrency exchange site but it will be traded on market exchanges.
Thus, some of the advantages here is that anyone can get into investing in the Bitcoin ETF without having a full knowledge, owning Bitcoin, without registering with a cryptocurrency exchange site, without having a crypto wallets to keep or safeguard your Bitcoin and risking a possibility of it been hacked, ETFs can comprise of more than one asset so Bitcoin ETF can also have other assets inclusive like apple stocks, Facebook stocks, etc it can help investors diversify their investment.
Some of the downside to this is that there may be increased management fee as ETFs charge in relation to the numbers shares one has which I believe is a higher rate compared to charges on crypto exchange sites. Owning a Bitcoin ETF is not the same as owning a cryptocurrency as one is a digital currency and the other is an investment fund which tracks the price of Bitcoin. Thus Bitcoin can be traded for other crypto currencies whereas Bitcoin ETF can't be traded for other crypto currencies. Bitcoin holders' privacy can be guaranteed by the use of the Blockchain technology but investing in the Bitcoin ETF which is regulated by the S.E.C is not.
All in all, the approval of the Bitcoin ETF will tremendously help and boost the overall view of cryptocurrencies which had suffered various image damaging events in recent times. Institutions will buy into the idea more as they feel it's recognized by S.E.C.
Get more on Bitcoin ETF here.
Good times are indeed here, many positives in the crypto market, I can see the bull run which comes with Bitcoin halving coming strong this season get ride for the ride guys!
What do you think? Are we going to see a new Bitcoin all time high? Are you investing in Bitcoin ETF?