The Bitcoin Futures ETF is here. How does that benefit the investors? Is the approval worth it?
Bitcoin already holds a noteworthy place in the cryptocurrency market. The long-awaited declaration for most stakeholders was the featuring of Bitcoin as an ETF. Bitcoin is a well-known digital currency purchased as currency speculation; things can be sold over the crypto market, and you are paid with Bitcoin. Talking about Bitcoin’s worth now, it goes around approximately $64,000 in the market.
Bitcoin has successfully been launched as an ETF. Exchange-traded funds are a type of exchange-traded products and investment funds that are traded on stock exchanges. ProShares have offered Bitcoin ETF. Bitcoin-linked exchange-traded fund finally made its debut on Tuesday, 19 October on NYSE. It is now liable for trading under the ticker BITO. With this modernization of ETF, investors can now buy Bitcoin without buying the Bitcoin on a crypto exchange. This trade is made under the ProShare Bitcoin Strategy ETF (BITO), which keeps track of the Bitcoin market that has risen by 3% since the latest debut was made. Before BITO, earlier debuts were made by Grayscale Bitcoin Trust (GBTC).
After years of effort, the milestone has been passed. A large group of investors can now easily invest without a brokerage account, buying stocks and ETFs. One may not put himself into the grind, establishing another account with a cryptocurrency provider. It is easy to overcome security risks as well. No doubt, investment in Bitcoin ETF is handsomely profitable. No complex storage is required, and the procedures are secured.
Bitcoin Futures ETF will provide a next-level opportunity for profit-making investment to the young enthusiasts of the crypto world. They desire to jump into this digitally regulated financial world. The second futured-based ETF can come anytime sooner this week. ETF has four more Bitcoin futures in the race to be launched by October 2021 from ProShare, Valkyrie, Invesco, and Van Eck.
Securities and Exchange Commission (SEC) is the spine to all the ETFs. Its approval is needed for the proper functioning of Bitcoin Futures ETF. Therefore, SEC is still reluctant to allow Bitcoin ETF to make its way to the crypto world. SEC already turned down a Bitcoin ETF named Winklevoss Bitcoin Trust in 2017, launched by Cameron and Tyler Winklevoss. The reason for the rejection tells that Bitcoins are prone to manipulation and fraud. Winklevoss brothers’ zeal bore fruit, and their Bitcoin was approved on June 19, 2018.
The working of Bitcoin ETF is much simpler than Bitcoin itself. Without going through the complex Bitcoin trading process, the investor can buy or sell the ETF that mimics the price of many digital cryptocurrencies around the globe. Investors are also benefited as they can diversify their investments and holdings without owning the Bitcoin assets.
As ETF is the investment vehicle that skips the roads to the complex security processes of Bitcoin mining or trading, it is highly recommended. One can short sell the Bitcoin ETF when the mirrored price of Bitcoin happens to fall in the market. It is one of the reasons to invest in Bitcoin Futures ETF. This is something that must be brought into the mainstream of the traditional cryptocurrency market. Bitcoin ETF paves a new direction to the crypto world, which makes it highly preferred.
The BEX Cryptobank‘s specialists emphasize that no matter what type of investment in cryptocurrency you choose, it is important to get personalized advice and competent expert opinion in advance.