Bitcoin ETF, what is it really? - page 2.

BitcoinPanther

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Quote from: Parodium on August 21, 2018, 03:49:34 PM

I personally believe that whilst ETFs are a step in the right direction, it's unlikely they'll be approved any time soon, simply because of the market uncertainty looming over Bitcoin and other cryptocurrencies now. However, those making the decision do have a financial incentive to approve it if they're intelligent enough to make use of this opportunity.

There's always that percentage of uncertainty for approving investing instrument such as Bitcoin ETF. And just as you speculated, other experts believes the same that approval might take more time. But this is not a bad thing really.

SEC being an institution that wanted to protect investors and the welfare of the general market and checking security points are well in place against fraudulent activities deferred the approval to get more time to carefully study the ETF proposal.

And should it take more time to be approved, we can all be sure that it is definitely for the better.

BitcoinPanther

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Quote from: Uyiosarugue1 on August 21, 2018, 04:46:04 AM

Thanks for the explanation, it will be a huge plus to the cryptocurrency market if it gets approved and I believe it will be eventually.SEC will bow to the pressures

My pleasure Uyiosarugue1.

I feel that it is our responsibility to discuss matters that have a direct effect on this chosen economy of ours. I, too, is benefiting from our discussions.

I strongly believe the same, the Bitcoin ETF will bring in a lot of positive effect to the cryptocurrency market. It will be a vote of confidence should a trusted financial institution such as SEC sees Bitcoin ETF a sound investing instrument.

Though i have to say that SEC cannot be pressured to bow down for approval, but the good thing is that they opened their ears and started listening to the proposal of a cryptocurrency ETF. And that itself is a very good thing.

Parodium

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DMs have been disabled. I am busy.

I personally believe that whilst ETFs are a step in the right direction, it's unlikely they'll be approved any time soon, simply because of the market uncertainty looming over Bitcoin and other cryptocurrencies now. However, those making the decision do have a financial incentive to approve it if they're intelligent enough to make use of this opportunity.

bitlind

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Even though it's can be mad the best thing for a bitcoin, and community but anyways so many people are relying their lives on that so it's definitely would be the pump of all times in the history! And we all are waiting for that.

beniesyde

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ETF greatly helps Bitcoin and the entire encryption industry. He can not only bring huge amounts of money to the market, but also significantly increase the recognition of bitcoins around the world. I only have a double mind if the SEC will sanction it. I read somewhere that it will take a new entrance to the SEC basket around 240 days. This means that it will be around February 2019, before we find out whether the ETF will be successful or not.

Uyiosarugue1

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Quote from: lolehiM92 on August 20, 2018, 11:11:24 AM

ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

In addition, ETF bitcoins will not be traded in the conventional exchanges, there will be some sort of parallel market -an Over-the-counter OTC market where it will be traded.

Uyiosarugue1

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Thanks for the explanation, it will be a huge plus to the cryptocurrency market if it gets approved and I believe it will be eventually.SEC will bow to the pressures

Jessica2009

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According to my studies ETF means exchange-trade-funds it may seem as similar to mutual fund but it is different from each other . We need only a demat account for trading in ETF the market price is decided during market hours . Mutual fund is decided after the closing of the market . Mutual fund is purchased in fractions and ETF is purchased as a whole . To my concept ETF approval can help to increase the value of Bitcoin .

jmvzlfyg

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ETF is very helpful to Bitcoin and the entire encryption industry. It can not only bring huge amounts of money into the market, but also greatly enhance the recognition of Bitcoin around the world.

talkbitcoin

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All I know is that I know nothing.

Quote from: BitcoinPanther on August 19, 2018, 10:49:13 PM

Why ETF? Primarily, ETF does not require professional trading skills unlike others such as mutual funds. You need not be a professional trader. It has a low operating expenses with no investment minimums. Thus, everyone gets to invest on Bitcoin ETF easily.

i am no expert but this part doesn't sound right to me. since ETF is tied to bitcoin and even though the changes may differ but it still is the same thing and you still need to have trading skills to invest in ETF and be successful. the same swings will happen there too!
as for "no investment minimum", is it lower than directly investing in bitcoin? i seriously doubt it!

BitcoinPanther

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Quote from: rudox on August 20, 2018, 11:32:38 AM

But every postponement of the admission reflect on the market and push it further down.

Hi there rudox! As much as we witness the sharp fall of bitcoin after the postponement of bitcoin etf, many experts believe that this is a good thing.

And if you read and follow articles you might gain a sense of appreciation on SEC's reasons of delaying the approval, in which, allow me to quote:

Quote

While the SEC has had to play catch-up with initial coin offerings, where companies issue their own cryptocurrencies in a crowdsale, the US regulatory body has more control over the approval and rollout of Bitcoin ETFs. In its statement on Direxion's Bitcoin ETF, the SEC said that it needed more time to decide because it wanted to allow for “additional analysis.”

This analysis would in part be used to determine whether or not the SEC is equipped to “prevent fraudulent and manipulative acts and practices” upon approval of Direxion’s Bitcoin ETF, and whether it could “protect investors and the public interest” as well as “promote just and equitable principles of trade.”

Read the full article here: https://www.longhash.com/news/a-delay-on-bitcoin-etfs-is-probably-a-good-thing

BitcoinPanther

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Quote from: cuong1610 on August 20, 2018, 12:35:32 PM

The Bitcoin ETF acceptable, which is really a very positive signal. And it will attract more people to join the crypto

Yes indeed cuong1610, once Bitcoin ETF gets approved, it will send a very positive signal which in turn will strengthen the confidence of possible investors, both institutional and individual.

And as it attracts more people to join the crypto economy, this will also bring cryptocurrency in the mainstream market of finance & trading. A great deal of advantage for all of us.

cuong1610

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Quote from: BitcoinPanther on August 19, 2018, 10:49:13 PM

What are your thoughts?

The Bitcoin ETF acceptable, which is really a very positive signal. And it will attract more people to join the crypto

BitcoinPanther

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Quote from: blueteam09 on August 20, 2018, 11:23:03 AM

ETFs are like a passport to legitimize Bitcoin to help investors trust it. Many investors believe only in what is protected by law and many investors at the moment assume that if Bitcoin passed the ETF will rise again. Many say the ETF will be the lifeline of the Cryptocurrency market.

I really believe that bitcoin is not illegal per se inspite of it being unregulated by many governments.

But i am with you on the opinion that the Bitcoin ETF will help build trust to investors and even extend that trust to non-crypto/non-techie investors too. As you well spoke of it, many investors believe that an investment protected by law and governed by ruling authority on market and finance is a sound investment to begin with.

And yes, i do agree too that the Bitcoin ETF will be one of the many life lines that will keep the cryptocurrency market alive and afloat.

Thank you for sharing your knowledge blueteam09. I believe this way, we help others, and ourselves as well, stay relatively informed.

rudox

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ETF will really help bitcoin in having more demand and wider adoption. I am only having double mind if SEC will sanction it. I read somewhere that it will take a new entrance into the SEC basket about 240 days. This means it will be around February 2019 before we know whether ETF will be successful or not. But every postponement of the admission reflect on the market and push it further down.

1richkid

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Quote from: BitcoinPanther on August 19, 2018, 10:49:13 PM

The news of Bitcoin ETF has taken center stage for the past months, but what is it really? And what good will it do to crypto users?

To shed a little bit of light, ETF is an acronym for Exchange-Traded Fund. It is a passive investing instrument that has an underlying asset, and in the case of Bitcoin ETF, bitcoin is the underlying asset.

Why ETF? Primarily, ETF does not require professional trading skills unlike others such as mutual funds. You need not be a professional trader. It has a low operating expenses with no investment minimums. Thus, everyone gets to invest on Bitcoin ETF easily.

Will Bitcoin ETF split the Bitcoin economy into two? Well, as stated earlier, Bitcoin is the underlying asset of Bitcoin ETF, thus, investing and trading on Bitcoin ETF will only strengthen bitcoin itself.

Then why not invest and trade on bitcoin alone? With Bitcoin ETF, one need not bother about technicalities that involves safe keeping of your digital asset. All is taken care of plus the fact that your asset is moving on a busy market along with other popular ETFs.

Lastly, i do believe that Bitcoin ETF is another gear towards cryptocurrency adoption which is really really good for the entire crypto economy.

What are your thoughts?

I'm concerned about the security of ETF, if it can be a safe haven for crypto I believe more mainstream interest will be aroused as more people will be sure they are safe from hacks and scams

blueteam09

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📱 CARTESI 📱 INFRASTRUCTURE FOR SCA

ETFs are like a passport to legitimize Bitcoin to help investors trust it. Many investors believe only in what is protected by law and many investors at the moment assume that if Bitcoin passed the ETF will rise again. Many say the ETF will be the lifeline of the Cryptocurrency market.

BitcoinPanther

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Quote from: lolehiM92 on August 20, 2018, 11:11:24 AM

ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

Thank you lolehiM92 for expounding the sense of ownership when it comes to ETF.

Truly, with Bitcoin ETF, shareholders does not own any bitcoin per se. They only have stock ownership. But it is a good point to remember that liquidity remains high at all times even if one only holds an ETF.

And it is in the same sense that technicalities on safe guarding your crypto asset becames fairly easy as one does not really own an actual bitcoin at hand but gains nonetheless under the same bitcoin economy with nearly the same potential as actual bitcoin owners.

lolehiM92

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ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

BitcoinPanther

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Quote from: Samarkand on August 20, 2018, 09:22:01 AM

This depends on the details of the respective ETF.

E.g. the new VanEck SolidX Bitcoin Trust (the 3rd attempt
of VanEck to get a Bitcoin ETF approved by the SEC) has a
investment minimum of 200k $.

Quote

Each share of the VanEck SolidX Bitcoin Trust is set to cost a hefty $200,000,
according to a filing with the Securities and Exchange Commission on Wednesday.

https://www.cnbc.com/2018/06/06/vaneck-tries-a-third-time-for-a-bitcoin-etf.html

Even if the VanEck ETF gets approved, which is looking unlikely at the moment,
the investment minimum will make a participation for most people impossible.

Thank you for shedding more light on the bitcoin ETF Samarkand. It is good to note that respective ETF will have differing details and yes, investment minimums too. But by principle, ETFs were supposed to be investment minimum free. Unfortunately (if you read further on the same article you quoted), the hefty $200,000 per share of VanEck SolidX Bitcoin Trust was intended for institutional investors and not retail ones.

I do believe that until the totality of the proposed Bitcoin ETF gets approved, most of the news we will see are partial. I will remain hopeful that retail investment will have no minimums for this passive investment instrument to remain truly ETF.

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