Bitcoin ETF: what is it and what can you expect from these new investments?

Bitcoin ETF approval has been on the table of US regulators for some time. The SEC (US Securities and Exchange Commission) has repeatedly denied the exit of one of these investment funds, arguing that there are not enough tools to identify possible fraud or manipulation of Bitcoin.

Be that as it may, BTC has entered the realm of finance and it may be a matter of time before a retail investor can deposit his money in one of these ETFs.

What is and how does a Bitcoin ETF work?

To begin with, you have to define what is this of a Bitcoin ETF. It is an investment vehicle that can lead millions of new investors to investment through institutional investment funds without complexities and under a stable regulatory framework. To get more info about Bitcoin ETF, it’s recommended for everyone to visit

Listed investment funds – ETFs – facilitate the exchange of securities on the stock market, as if they were ordinary shares. They are traded on secondary markets and are very popular in the financial world. In an operation, the investor does not buy the asset, but the value that marks the market price. That is, in the case of a Bitcoin ETF, the user would not be buying this cryptocurrency directly.

However, investing in an ETF has a number of characteristics that the user should be aware of. For starters, these are transparent and flexible tools. It can be bought at any time and there is no need to wait for the end of each market session as with other instruments.

Just like it can be bought at any time, it can also be sold. ETFs are one hundred percent liquid and the management commissions are usually lower than any traditional fund, although at this point it will be necessary to consult the bases and proposals offered by the trading firms.

It should also be borne in mind that trading platforms offer very good experiences when it comes to avoiding complexities in this type of investment. In fact, more and more users are opting for this type of channel, associated with a lower cost in buying and selling operations.

However, cryptocurrency platforms do not have legal backing to be on a supervised national exchange. Why? Because at the moment Bitcoin and the crypto ecosystem in general are associated more with speculation than anything else. Perhaps we have to wait for a change in mentalities so that the authorities take the step forward that many agents are already asking for.

These ETFs are backed by American advisers Following some studies of American entities, it is observed that advisers would prefer to buy crypto in an ETF package compared to all other options. In fact, according to a Bitwise report, for 37% of advisers, the launch of Bitcoin ETFs would be a key factor when investing in this virtual currency. It seems that the step forward could soon be taken and that is why the number of crypto portfolio advisers is growing. There are also more experts who ensure that the price of BTC will increase in the next five years.

It should be remembered that Bitwise Asset Management itself submitted the request to the SEC to launch its own Bitcoin ETF that it subsequently had to withdraw due to the refusal of the American regulator.

How a Bitcoin ETF Could Affect Bitcoin

Analysts have long believed that the approval of a Bitcoin ETF would catapult the market value of Bitcoin. This belief is evident when examining Bitcoin price activity around the timing of potential ETF application approvals. Perhaps, in the coming months, regulators will be more open to this crypto market tool. For now, the entire community of this ecosystem is patiently waiting for the approval of the Bitcoin ETF.

PKI-Security Engineer & security blogger at She is passionate about covering cybersecurity and Technology.

Leave a Reply