Basically, a Bitcoin ETF is one where the underlying asset is Bitcoin. This means that when you purchase Bitcoin ETF, you’re purchasing the cryptocurrency, albeit indirectly. This is because you’re holding the Bitcoin ETF in your portfolio and this ETF tracks the real-time price of Bitcoin. Therefore, the difference is that when you invest in Bitcoin ETF, you have the luxury of trading Bitcoins without the struggles of buying and storing it.
This is exactly what large institutional investors wants, because they do not want the hassles of opening and managing wallets and worrying about the safe-keeping of those coins. This is going to be a significant event, if it is approved. There is also a lot of other ETFs where people would invest in say Gold, without dealing with any physical Gold.
We will also see a large influx of fiat capital and a much larger demand for bitcoins, if this is approved.
