


Bitcoin ETF is a legitimate form of investment that cuts out the complex issues and security procedures many people face when dealing with cryptocurrencies. Nevertheless, it is yet to break into the US financial market.
Introduction to ETFs
Bitcoin and cryptocurrency have become the talk of the town. Years ago, only a small number of individuals adopted Bitcoin. At that time, the value was relatively low as over 5000 BTCs could purchase a mere 3 to 4 hamburgers if not less. Compare that to today's world where institutional investors are now clamoring for cryptocurrencies. Recently, MicroStrategy converted a considerable amount of its balance sheet into Bitcoin (over $3 billion). Even Tesla, the futuristic electric car company, has approved the use of BTCs to make purchases.
However, with all these interesting facts about Bitcoin, something is missing. How can many people in the economy embrace it? How can more individuals be exposed to this haven asset? One answer, according to many, is the use of an ETF. In this article, we will explain what an ETF means and its relationship with Bitcoin.
What is a Bitcoin ETF?

Understanding the meaning of an ETF gives an excellent head start to what Bitcoin ETF is. The term ETF is an abbreviation for an exchange-traded fund. It is an investment fund that tracks the price of a fundamental asset. It exists in many industries and various types of assets. For instance, gold ETFs have been in existence for a long time, tracking the price of gold.
Just like the gold ETF, a Bitcoin ETF works in a similar way by tracking the price of Bitcoin. What more, ETFs are financially regulated products. They can be traded on conventional markets like NASDAQ, Dow Jones, and S&P 500, unlike regular cryptocurrencies that can only be sold on a crypto exchange. As such, the border between the two financial gateways remains sour.
How Does a Bitcoin ETF Work?
Bitcoin ETFs allow traders to adjust their investments even when they do not own these assets. For investors whose sole target is to make a profit and avoid losses, ETFs make it easier and simpler to buy and sell individual assets. Many ETFs target a large market in a specific niche. Because of this, they allow investors to modify their holdings easily.

Anyone can invest in a Bitcoin ETF without facing the trouble or stress of trading Bitcoin usually. In addition, those who own a Bitcoin ETF do not invest in Bitcoin directly. Therefore, they will not have to face the same complex storage and security procedures other cryptocurrency investors face.
Benefits of a Bitcoin ETF
Now, it is evident that Bitcoin is an asset that could be a bit complicated. You do not expect large organizations to make BTC transactions like regular traders. For instance, Goldman Sachs will not just plug a hardware wallet and transfer some huge amount of BTC into it. Large firms need a complex regulatory framework to carry out these types of transactions.
A Bitcoin ETF is very effective in this scenario. It gives traditional markets price information about an asset without having to worry about the process of owning them physically. Moreover, a Bitcoin ETF is not restricted to just Bitcoin. It can hold other assets, like Gold, Ethereum, Tesla stocks, and so on. Therefore, investors have a variety of assets to choose from.
Significance of Bitcoin ETFs in US Markets
When people discuss Bitcoin ETFs, one thing that comes to mind is the US market. However, the US market will not be the first to adopt the use of ETFs. The first Bitcoin ETF, called the "Purpose Bitcoin ETF", was initiated on the Canadian stock market. Regardless, the US market is the world's biggest financial market. A US Bitcoin ETF would further strengthen Bitcoin's adoption as a form of investment.
Many attempts have been made to launch a Bitcoin ETF in the US market, but all have faltered due to actions of the Securities and Exchange Commission (SEC). The US SEC gave various reasons for declining attempts to create a Bitcoin ETF in its financial market. Some of the issues cited by the US SEC include Bitcoin's volatility and unregulated nature, including its liability to market manipulation. Though these factors seem plausible, how about other markets that have ETFs?

The capacity for Bitcoin to be a macro asset class was greatly helped by the advancement in blockchain technology. Years ago, large firms could not buy billion dollars worth of Bitcoin easily. Now, there is enough infrastructure and liquidity to carry out extensive operations. With this, regulatory bodies may eventually align with Bitcoin markets' maturity and pave the way to create a US Bitcoin ETF. How this will happen is still unknown. However, we can stay positive that it is closer than expected.
Opinion: Invest in Bitcoin or Bitcoin ETFs?
We believe that you are better off just investing in Bitcoin. If you are someone who wants to save money and protect it against the devaluation of traditional currencies, Bitcoin may be the way to go. As indicated above, there are many benefits of investing in Bitcoin ETFs. Depending on what Bitcoin means to you, you can either invest directly or adopt the use of ETFs if you find them attractive.
Closing Remarks

A Bitcoin ETF plays a crucial role in financial markets. From not facing the complex procedures investors pass through when making cryptocurrency transactions to not being restricted to the use of crypto exchanges, Bitcoin ETFs are crucial. However, the US SEC still has issues bringing it to the US markets, sighting some apparent inadequacies. Many other markets have embraced the use of Bitcoin ETFs with its uniqueness of diversification of assets. We can only keep our fingers crossed as we anticipate when this innovation will find its way into the most significant financial market in the world.
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto! Check out the DeFi Direct Linktree for all the access links!
For those looking for tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Author
Related News


Coinbase Gains Regulatory Nod from BMA for Retail Perpetual Futures Trading
.jpg)
Building on the launch of its International Exchange in May, the approval reflects Coinbase's effort to extend perpetual futures trading to eligible non-US clients.
Summary
- Coinbase has obtained regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures for eligible non-US retail customers.
- The approval builds on Coinbase's earlier announcement in May 2023 when it launched Coinbase International Exchange, a platform aimed at non-US institutions to trade perpetual futures.
Crypto exchange, Coinbase, in an announcement said it has obtained regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures for eligible non-US retail customers. Aligning with the BMA's rigorous guidelines, the move underscores Coinbase's dedication to compliance and regulatory standards.
This approval builds on Coinbase's earlier announcement in May 2023 when it launched Coinbase International Exchange, a platform aimed at non-US institutions to trade perpetual futures. Now, the BMA's approval extends this trading option to non-US retail customers.
As of today, non-US retail traders can verify their eligibility for perpetual futures trading on Coinbase Advanced, the company's retail trading platform, with official trading operations set to commence in the coming weeks.
Coinbase’s “Go Broad, Go Deep” Expansion Strategy
“As announced in the Phase II of our “Go Broad, Go Deep” strategy, we are dedicated to partnering with high-bar global regulators to build a crypto regulatory framework that allows crypto technology to continually drive innovation,” Coinbase said.
While the company initially planted its roots in the United States, it now seeks to expand access to perpetual futures for eligible non-US clients, thus contributing to the evolution of the global financial system and extending economic freedom and opportunities to users worldwide.
In a climate where several crypto exchanges are facing increased regulatory scrutiny and scaling back operations in certain regions, Coinbase's expansion into perpetual futures demonstrates its determination to cater to growing demand in the crypto derivatives market while upholding security and transparency standards.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Follow us on Twitter and Instagram!
If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, cryptonomics explainers, and Trading Tool Kits from BSC News.
Looking for a job in crypto? Check out the CryptoJobsNow listings!
Author

Try Now!

Sign up Now
Coming Soon

WIN BIG

Coming Soon

Sign Up Now

Earn Now
Coming Soon

Sign Up Now

Play & Mine!
Coming Soon
Editors Choice
Other Currencies
- nameLTBuyLitecoin
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyEOS
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyMonero
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyBitcoin Cash
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0%