Understanding Bitcoin ETFs and its current market conditions.
With cryptocurrencies being in the spotlight for so many years, it has given rise to a number of other related financial fields like Initial Coin Offering and Bitcoin ETF or Exchange Traded Funds. Due to the highly volatile behavior of the Cryptocurrencies, many investors around the world are quite speculative and hence backed out from investing in them. While lack of the crypto regulation in many countries, has taken people back in investing in them, some them are opting to stay away during to more regulations on them. People don’t seem to be content with the current suite of more than 1500 types of cryptocurrencies and need a stable counterpart of it, on the stock market to obtain a similar feeling of trading any normal asset apart from the cryptocurrencies.
Bitcoin ETF is an Exchange Traded Fund which is nothing but shares to be traded and backed by Bitcoin, whose price fluctuations would be dependent on the price of Bitcoin itself. In simple words, Bitcoin ETF is nothing but a stock market counterpart of the cryptocurrency market which will open up opportunities for many institutional investors as well as a venture capitalist to come forward and take part in investments. It is even considered to be an innovative way to open up opportunities for the more number of people.
Below are some insights with respect to Bitcoin ETF.
- Bitcoin ETF is like shares backed by the cryptocurrency Bitcoin, which has invariably attracted global investments. Assets like Gold, Silver, Oil, etc are traded through ETFs aka Exchange Traded Funds.
- It is even considered to be an indirect method of purchasing the cryptocurrency Bitcoin.
- Investing in the Bitcoin ETF is one of the safest methods to shell out profits from them.
- In the recent days, a number of proposals have been put forth before the SEC, to give them a green signal so that they can be traced on the stock exchanges.
- Specifically, Solidx Shares Bitcoin ETF along with Direxion Long and Short Bitcoin ETF are the Bitcoin ETFs which are put forth for the proposal before the SEC to get listed on the New York Stock Exchange (NYSE) along with Chicago Board Options Exchange (CBOE).
- Decision date for Solidx Shares Bitcoin ETF by the SEC is on 10th August and for Direxion Long and Short Bitcoin ETF, the deadline was extended to September.
- This consideration of approval of Bitcoin ETF by the Securities And Exchange Commission is not an easy task, hence it is highly probable that they might postpone both the initiatives, in order to gain maximum time for their decision.
- The initiative has attracted huge support from the major investors and venture capitalist apart from the community members.
- If at all the ETF are given a green signal, they would be coming into existence, not before January 2019. The reason being that a number of other proposals need to be filed which would take up a lot of time.
- It is noteworthy that CBOE was also the first exchange to initiate Bitcoin Futures in its portfolio. Therefore, even this action is highly affecting the prices.
- This is considered to be a positive sign in the cryptocurrency space as it is indirectly a regulated form of cryptocurrency. This is even supported by the fact that JP Morgan and Chase Bank, joined the community after the Initiation of Bitcoin Futures.
- One must be very careful in this hot cryptocurrency field as it is self-evident that anything which is Hot at last turns cold once it reaches its saturation levels.
Each and every single person on the cryptocurrency platform is looking forward for the decision of the Securities and Exchange Commission regarding the Bitcoin ETF which has created a lot of commotion in the highly volatile cryptocurrency market. The recent decision, to postpone might be the reason for the Bitcoin fall which indirectly has rendered the altcoins to experience a bearish trend.