Once its like other stocks, we know that there is a huge chance that the prices will shoot up like crazy. However, after that we will see a lot of stability and this will not be very volatile like now therefore huge up and downs wont be possible and profits will not be huge (Including risks)
Is it correct? can someone please explain how does this works? Is there going be a big commission as well on each trade? is there going to be a margin? I actually dont understand this if someone can shed some light in simple terms. Thanks.
Is it correct? can someone please explain how does this works? Is there going be a big commission as well on each trade? is there going to be a margin? I actually dont understand this if someone can shed some light in simple terms. Thanks.
It is most unlikely that ETFs will make any negative impact. If a big corporate comes to the bitcoin market, it will make positive impact only and nothing else. However, we don't yet know what kind of ETFs will those be! There are mainly two types of ETFs,
1. Synthetic ETF - which doesn't hold any physical asset and plays on the price fluctuation of the attached asset.
2. Physical ETF - Actually holds physical asset
So if these ETFs are in question starts holding physical bitcoin, they will actually have to buy those from the open market and fresh funds will flow into the market. That is going to make positive impact for sure. However, if these ETFs are planning to introduce synthetic funds, then no fresh funds will flow into the market and no positive impact is likely to be shown.
Since we don't yet know what kind it is, it's better to wait and watch the outcome. THE rest of your questions can be answered once we have the details of these ETFs available with us.
