Hi Bitcoiner.
- What are your Opinions and views on the Bitcoin Spot ETF's? *
1.How can I Trust them with Bitcoin that I invest in?
2. I don't actually OWN my Own Bitcoin?
Here is the latest news about Bitcoin Spot ETF's sent to me at time of writing.
It finally happened. After much speculation, the Securities and Exchange Commission (SEC) has approved the first spot Bitcoin ETF in the US, an exchange traded fund with bitcoin as the underlying asset.
Let’s unpack this landmark event for crypto by answering the immediate questions surrounding the approval of this type of investment.
What is a spot Bitcoin ETF?
A spot Bitcoin ETF is a type of investment fund that allows people to buy shares representing actual bitcoin held by the fund. It’s traded on a stock exchange like a stock and aims to track the price movements of bitcoin itself, giving investors a way to invest in bitcoin without directly owning it.
While there are many Bitcoin ETFs by various investment managers, each trading under its own name, or ticker, all these ETFs will be tracking the same underlying investment. Some may have higher fees than others, but just like T-shirts with different branding, they’re generally made of the same thing.
Why the need for a Bitcoin ETF?
Why would investors buy an ETF rather than actual bitcoin? It comes down to what regulation allows investment managers to invest in on behalf of their clients, and what people are comfortable investing in. A Bitcoin ETF listed on a stock exchange may be more familiar to many investors than buying crypto through an app or crypto exchange.
Some investors may also believe that owning BTC ETFs is safer than owning actual BTC as it removes a lot of the security risks involved in owning the actual asset. The drawdown of this is that there are usually fees attached to ETFs. It ultimately depends on what the investor is comfortable with. Some people choose to invest in ETFs rather than the underlying stocks that make up the ETF, the same will apply to Bitcoin ETFs versus actual bitcoin.
This isn’t the first spot BTC ETF to be approved, though. Spot BTC ETFs are currently trading in eight countries, making the US the ninth after Wednesday’s approval. The strength of the US economy and the influence it carries in shaping global crypto regulation is what makes this such a significant development for bitcoin and crypto adoption around the world.
What could this mean for crypto?
Many analysts believe a spot Bitcoin ETF will lead to capital inflows into bitcoin from investors who have up until now only been allowed access to more traditional investments such as stocks, mutual funds and ETFs.