Disclaimer: The information's contained in this explanation is the result of my understanding of Fibonacci Retracement and may contain some errors. Search and confirm about it.
Table of contents
1. Bitcoin ETFs
2. Why do investors want a bitcoin ETF?
3. Advantages of Bitcoin ETFs
4. What are the Bitcoin ETFs that may be approved?
Bitcoin ETFs
We all believe that Bitcoin is the future, but its future success is not a guarantee, as there is no one who will guarantee your money if the price drops by 90% or more. Thus, when investors think of investing in such assets, they resort to mutual funds and exchange-traded funds, which usually own a variety of stocks, investments and other assets, which avoid these high risks.
In the case of Bitcoin, the Bitcoin ETF is not available to US investors and the SEC's slowness in approving one may make investors apprehensive about investing in one of these digital currencies.
Bitcoin ETF will track the price of the underlying asset or index giving the user a price equivalent to that value but instead of trading on a cryptocurrency exchange or buying cryptocurrencies from brokers the ETF will be traded on an exchange like NYSE.
Why do investors want a bitcoin ETF?
Investing in Bitcoin ETFs combines two ideal parts of investing: ease of investing in an ETF, low exposure to risk (holding bitcoin, learning more about crypto, subscribing to unregulated platforms, not being able to buy large amounts or monetize them in a timely manner) and exposure to Bitcoin. Which is already volatile and yet makes quick profits.
Advantages of Bitcoin ETFs
- Diversification: You can invest in several assets at the same time. Instead of buying alternative currencies, you will be able to buy several shares of an unrelated nature.
- Legal compliance: Some investors are afraid of joining digital currency because it is not legal or guarantees tax compliance.
- Efficiency: Some investors are afraid to hold private keys or take those risks.
What are the Bitcoin ETFs that may be approved?
What are the investment funds that may be approved?
Grayscale, which holds $61 billion in digital assets, has announced that it will convert GBTC into an exchange-traded fund “when permitted,” meaning the Securities and Exchange Commission (SEC) is ready to approve the first Bitcoin ETF.
The timing is not random as it comes from some competitive pressures from Fidelity which is of the highest caliber in the industry.
In addition to the decline in the GBTC premium and some indications of investor confusion.
With more people ready to invest in cryptocurrency, the Securities and Exchange Commission (SEC) will have to speed up the process in accepting one of these applications.
source: https://academy.binance.com/en/articles/bitcoin-etfs-explained