Why is everyone waiting for Bitcoin ETFs?

In this article we will touch upon the issue many find relevant nowadays!

To answer this question we must first make sense of what an ETF is. Broadly speaking it is a fund containing multiple different assets that can be freely traded on exchanges. There are pharmaceutical industry stocks ETFs just like for high tech industry or raw materials or etc. ETF portfolios are well diversified so participation in such funds is considered to be one of the most reliable ways of investing making them attractive to institutional investors, for example pension funds.

In relation to bitcoin, ETFs will essentially be exchange funds where this cryptocurrency is the core asset. Thus the fund will buy bitcoin and sell its shares to investors. This ensures investors’ money is safe and sound as they are not exposed to the risk of working with cryptocurrency directly through exchanges. By the way, crypto exchanges have times and times again shown how vulnerable they can be to hacking attacks.

The launch of bitcoin ETFs is a very serious step that the future of the cryptocommunity depends on in many ways. There is so much money at stake here. If bitcoin ETFs get the green light, it will attract institutional investors to the market, potentially raising the cryptocurrency market capitalization by 500 billion dollars by the end of 2018, and that’s a conservative estimate. In this scenario, obviously, the majority of the growth will be on the side of bitcoin, making it recoup the losses suffered in the recent months.

ETF as an investment vehicle is meant to simplify the process of investing into bitcoin. Besides, it will make the currency more attractive by making it easier to get into and use.

Lean more about us here: http://www.idacpro.io

Join now:
Telegram chat https://t.me/IDACOfficial1