What are ETFs?
Exchange traded funds, more commonly known as ETF, which is unlike mutual funds have gained the global acceptance. Assets namely gold, stocks and oil are tracked through this kind of investment fund. Similar to conventional stocks, these assets can be traded on exchanges. ETF offers investors an innovative option to buy and sell their holdings to other investors through the stock exchange.
Bitcoin ETF will be good for the market where the underlying asset is Bitcoin. Purchasing Bitcoin ETF defines the purchase of cryptocurrency, albeit indirectly. The ETF that you are holding in the portfolio used to track the real-time price of Bitcoin. You can enjoy the luxury of trading Bitcoins without any obstacles to buy and store if you had invested in Bitcoin ETF.
Its Effect on BTC ?
The ripple effect of bitcoin clearly states an entry of big money into crypto markets via the additional products of ETFs. Usage of ETFs by latent firms is also a clear indication of the effect on BTC. If the SEC approves the ETFs, a maximum infinite output is expected that indirectly opens the door for the mainstream to invest in all other cryptocurrencies.
The tentative date for the SEC’s decision is Friday, August 10- Decision should be finalized on or before September 24 that defines the possibility of 45 days extension.
High Possibility? Yes!
“Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated,”. This is one of the main reason for rejection of Bitcoin. Year after, Bitcoin Futures stepped into trading as the high investment banks like Goldman Sachs and JP Morgan started dipping their toes in cryptocurrencies.