• Advertise
  • Submit a Press Release
  • Contact Us
Blockchain & Cryptocurrencies Tabloid
  • Finance & Blockchain News
  • Bitcoin News
    mining

    Increased Demand Requires Increase in Nodes. Here’s Everything You Need to Know About Bitcoin Mining During Lockdown

    Bitcoin wallet

    BitcoinOfficial.org- Create a Bitcoin Wallet. Official Website.

    Bitcoin price

    What Drives Bitcoin Price?

    Mining

    Railway Authorities in Ukraine Shut Down Unlawful Mining Outfit

    Bitcoin

    Economic Crises Will Not Affect Bitcoin: Ledger Founder

    Supply and Demand

    Bitcoin’s Demand and Supply Dynamics are Constant: Bitwise COO

  • Altcoin News
    • All
    • Bitcoin Cash
    • Cardano
    • EOS
    • Ethereum
    • Litecoin
    • Monero
    • Ripple
    • Stellar
    price prediction

    Bitcoin, Ethereum, and Ripple Price Prediction in June 2020

    XTZ

    TEZOS (XTZ) Join the Top 10 Crypto Coin List

    MakerDAO

    MakerDAO to Implement New Security Feature After Loophole Detected in System

    BCH

    BCH Successfully Completed a Scheduled Fork, Added Minor Upgrades

    CUSD Stablecoin

    Canadian BVCI Launches Another Stablecoin CUSD

    EOS network

    EOS Network Is Running on Borrowed Resources After EIDOS Airdrop

    Trending Tags

    • Ethereum
    • Bitcoin Cash
    • Litecoin
    • Monero
    • Ripple
  • Crypto 101
    • All
    • Cryptocurrencies
    • Exchanges
    • Services
    • Wallets
    How to Make the Right Decision before Investing in Crypto

    How to Make the Right Decision Before Investing in Crypto

    Decentralized Marketplace

    What are Decentralized Marketplaces?

    Cryptocurrency is Here to Stay

    5 Reasons Why Cryptocurrency Is Here to Stay

    Web3 Pets

    Spotlight on Web3 Pets – Will 2023 Be Their Year?

    Crypto Swapping

    A Definitive Guide on Swapping Cryptocurrency

    crypto casino games

    What Are the Most Profitable Crypto Casino Games?

  • Blockchain Events
No Result
View All Result
Blockchain & Cryptocurrencies Tabloid
No Result
View All Result

Bitcoin ETF Explained: Will It Influence the BTC Price?

Anca F. by Anca F.
December 11, 2018
in Crypto 101, Cryptocurrencies

What is an ETF?

An ETF, or Exchange-Traded Fund, represents a form of investment vehicle that tracks the performance of a specific asset. This lets you invest in an asset without actually having to own the asset itself.

Since most traders aren’t interested in owning the actual asset but only making profits, ETFs simplify the investment process. Seeing as many traditional ETFs target larger baskets of assets that have common traits, they enable investors to easily diversify their holdings.

How Does a Bitcoin ETF Work?

A Bitcoin ETF is a type of ETF that follows the price of Bitcoin. This allows investors to have exposure to the asset, without having them be involved in the process of trading Bitcoin itself. As ETF holders won’t be directly invested in Bitcoin itself, they will not have to worry about the storage and security measures required of cryptocurrency investors.

How is Investing in Bitcoin ETF Different from Investing in Bitcoin?

If a Bitcoin ETF mimics the price of the cryptocurrency itself, why not just invest directly in the coin? First of all, as we mentioned before, there are no wallet installations or security procedures for holding Bitcoin. Also, the investor doesn’t have to interact with cryptocurrency exchanges; they can just buy and sell the ETF via traditional exchanges and markets.

Another benefit of Bitcoin ETFs is that it enables investors to short sell shares of the ETF if they believe that the price of Bitcoin will depreciate in the future. This sort of investing cannot be done in the traditional cryptocurrency market.

The most important aspect would be that ETFs are much better understood across the investment world than cryptocurrencies. An investor that is looking to enter the crypto space might be more inclined to opt for trading a vehicle of which he has a better understanding of already.

SEC Approval

Cryptocurrency-based ETFs proposals have so far been met with rejection by The U.S. Securities and Exchange Commission in 2018, indicating a hesitancy to offer retail investors an opportunity to add Bitcoin and other cryptos as a basket of securities.

On Sept. 20, the regulatory organization said it required more feedback from the public on the proposed SolidX Bitcoin Shares, a Bitcoin ETF which was issued by the VanEck SolidX Bitcoin Trust. The delay in the decision meant that earliest date for a response from SEC could occur on December 29.

There have many other applicants tried to receive approval from SEC, with the most known case being the Winklevoss twins. The brothers tried multiple times to get their ETF approved, with their first proposal dating back from the mid-2013s.

Forbes.com

Over time, the number of such proposals grew so much, that the SEC had to reject as many as nine of them just in August 2018. Some of the of the other applicants were Direxion, ProShares, GraniteShares, and the CBOE (Chicago Board Options Exchange).

Considering the direction in which things are currently going, the SEC is not likely to approve Bitcoin ETFs by the end of the year.

How Will This Affect Bitcoin’s Price?

There can be no specific answers to how such ETFs will affect Bitcoin in the long run, though the logical consequence would be that if the ETF received approval, this will allow more people to invest in Bitcoin, leading to a gradual increase in its price. To put things into perspective, gold ETFs appeared in the mid-2000s and after that, the spot price for gold tripled in the next 5 years.

However, the continuous postponement of SEC regarding ETF acceptance may lead to panic in the market and prompt many holders to sell their coins en masse, thus bringing the price of Bitcoin down.

Concerning futures-backed ETF, Bitcoin’s price would see a less significant impact, since futures contracts would be the asset that requires to be purchased, instead of actual coins.

Some actually believe that the BTC price might not be affected in any way, at best when it concerns ETFs themselves. Still, nothing can be said for certain until ETFs are actually approved, which means that all of these predictions are just mere assumptions.cryptocurrency futures

Conclusion

Although the SEC has not approved any type of digital currency ETFs, this doesn’t stop investors from hoping that one proposal will eventually pass and enter the market.

Tags: Bitcoinbitcoin etfBTCCryptoCryptocurrencyetfExchange-Traded FundInvestment
Previous Post

Ripple Calls for Cross-Border Payments Overhaul As New Report Shows Extreme Delays on Swift

Next Post

Bitcoin Gift Ideas: All I Want for Christmas Is Crypto! 

Anca F.

Anca F.

Invest at your own risk notice : The information on this website and the links provided are for general information only and should not constitute any financial or investment advice. We strongly recommend you to conduct your own research or consult a qualified investment advisor before making any financial decisions. We are not responsible for any loss caused by any information provided directly or indirectly on this website.

Related Posts

How to Make the Right Decision before Investing in Crypto

How to Make the Right Decision Before Investing in Crypto

by Hellen
January 18, 2023

Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) are some of the cryptocurrencies widely reported in the media....

Decentralized Marketplace

What are Decentralized Marketplaces?

by Hellen
January 16, 2023

A decentralized marketplace is a network where trade and transactions take place independently and transparently.  This ecosystem offers minimum transaction...

Cryptocurrency is Here to Stay

5 Reasons Why Cryptocurrency Is Here to Stay

by Hellen
January 11, 2023

Cryptocurrency is changing the way we think about money and the economy. We will explore five reasons why cryptocurrency is...

Web3 Pets

Spotlight on Web3 Pets – Will 2023 Be Their Year?

by Hellen
January 10, 2023

Web3 pets have come to revolutionize the idea of owning a pet while bringing color, fun, and possibly some crypto...

Crypto Swapping

A Definitive Guide on Swapping Cryptocurrency

by Hellen
December 21, 2022

If you’re new to crypto or have heard about swapping but don’t know how to do it, this definitive guide...

crypto casino games

What Are the Most Profitable Crypto Casino Games?

by Hellen
December 8, 2022

In this article, we will talk about what crypto casinos are, how they work, and what are some of the...

We Recommend

Top Rated Casinos
Bitstarz Casino

BitcoinCasino.io
Top Crypto Betting
1xBit.com
Top Rated Exchanges
Binance Exchange

Bityard.com
Top Advertising Services
Coinzilla Display Network
Top Crypto Wallets
Ledger Nano X

Guides & Reviews

How to Make the Right Decision before Investing in Crypto

How to Make the Right Decision Before Investing in Crypto

January 18, 2023
Decentralized Marketplace

What are Decentralized Marketplaces?

January 16, 2023
Cryptocurrency is Here to Stay

5 Reasons Why Cryptocurrency Is Here to Stay

January 11, 2023
Web3 Pets

Spotlight on Web3 Pets – Will 2023 Be Their Year?

January 10, 2023
  • Terms and Conditions
  • Privacy Policy
  • Advertise
  • About Us
  • Contact Us

© 2018-2019 theccpress.com by Brantell Media.

No Result
View All Result
  • Finance & Blockchain News
  • Bitcoin News
  • Altcoin News
  • Crypto 101
  • Blockchain Events

© 2018 - 2019 theccpress.com, a Brantell Media project.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.