The Bitcoin exchange-traded fund (ETF) is now here finally. Anticipated with great enthusiasm in a market witnessing a surge in Bitcoin prices over the past months, the eagerly awaited approval from the SEC is positioned to inject billions of dollars in new funding into the cryptocurrency sector in the upcoming years.
What happens if Bitcoin ETF is approved?
This initiative is anticipated to foster greater adoption, enhance liquidity, and contribute to the overall maturity of the market. Additionally, it signals a transformative shift in the perception of cryptocurrencies, evolving from a niche asset class to one increasingly embraced in mainstream financial circles.
What are the approved Bitcoin ETFs?
In the initial round of approvals, the SEC granted permission to 11 issuers seeking to launch bitcoin exchange-traded funds (ETFs). The approved filings include ETFs from ARK Invest (ARKK), BlackRock (BLK), VanEck, WisdomTree, Fidelity, Invesco, Franklin, Hashdex, and Valkyrie.
Is ETF good or bad for bitcoin?
Overall, opinions among experts are split regarding the immediate market repercussions of a spot BTC ETF approval. While there is consensus that it will likely contribute positively to the price of Bitcoin, the extent of this positive impact and its influence on other crypto assets remains uncertain.
What is the disadvantage of Bitcoin ETF?
An ETF won’t deposit physical cryptocurrency directly into investors’ accounts, rendering it unusable for direct transactions. Furthermore, an ETF would not afford investors the same level of anonymity as cryptocurrencies, a significant attraction for many in the crypto investor community.
Is Bitcoin ETF the same as Bitcoin?
Bitcoin is exchangeable for various other cryptocurrencies such as Ethereum, Litecoin, XRP, and others. However, a BTC ETF does not possess the eligibility to trade for alternative cryptocurrencies. Unlike cryptocurrencies, a Bitcoin ETF functions as an investment fund designed to mirror the price movements of Bitcoin.