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Everyone is praising Blackrock recently for its filing for Bitcoin ETFs and there is no denie that blackrock wisdom tree have possess positive effect on crypto market for the past few days.
Bitcoin has been going through ups and downs, the crypto market a whole become tough decision for Investors due to SEC attack on crypto exchanges in United States, the SEC attacks always cause ripple effect on the crypto market with their unclear regulations.
However Bitcoin rallies and touch highest level since April as blackrock ETF news arrived
some days ago. It now seems that this development of Bitcoin exchange -traded funds (ETFs), have a big role to play in crypto industry and have the potential to greatly expand the accessibility and adoption of Bitcoin.
So what is a Bitcoin ETF and Why is so important to crypto community?
Bitcoin ETFs is Exchange-Traded Funds, ETF serve as important instrument for crypto investors to have exposure to the Bitcoin market by tracking the price of Bitcoin and anyone interested can sell it like a stock. In nutshell, this tool was first implemented in 2021 in Canada to help investors reduce the risk in Bitcoin investment by tracks Bitcoin price and movements that seem difficult for some people.
So why are they now so important to the crypto community or investors?
For someone like me that always find it difficult to track Bitcoin price when I first enter the crypto market, I dont know maybe it's because of fear to lose money on it ,but i know i always find it difficult. So with Bitcoin ETFs crypto investors can get access and exposure to Bitcoin, this tools also help much people like institutional investors, the Investors that can invest in a crypto project that is not yet regulated and it will provide a level of trust for such project to attract more investors.
I hope you're not getting it confused?
The reasons why Bitcoin jumps after blackrock ETFs filing is because of ETFs ability to increase liquidity and stability of Bitcoin market. Bitcoin ETFs will allows investors to buy and sell Bitcoin through an ETF and for investors going through ETFs there will be large demand for crypto assets which will stabilize the Bitcoin price.
We always had issue of whales in crypto industry, when big whale buying the market it help the price to increase and when they sell it also affect the market. Though this is true, but Bitcoin ETFs will make Investor to buy and sell Bitcoin without affecting the market.
There is one thing certain on this new development, it going to increase adoption of Bitcoin in all nations, honestly the Bitcoin ETFs will made nations accept Bitcoin because everyone will have easy access to it which can further drive the growth of cryptocurrency market in the future.
In conclusion, Blackrock files for Bitcoin ETFs have to be praise because it is something crypto community needs and it will be interesting to see how this will continue to impact on Bitcoin market and cryptocurrency market a whole. I believe if Bitcoin healed it will drive other cryptocurrencies.