Historic ETF 💸
If you don’t hold at least one ETF in your portfolio currently, you must be a very interesting investor. ETFs are loved by investors because they track a basket of stocks just like a mutual fund, but it’s more accessible and less expensive. It makes investing simple, and that’s something that passive investors need. ETFs can track some interesting things too; there is a meme ETF that tracks those types of stocks, and there is a social sentiment ETF that was backed by Dave Portnoy. The only popular financial asset that is missing from the list is cryptos, and even though there have been some attempts, it hasn’t resulted in anything.
History has been achieved, and we can now say that there is a Bitcoin ETF. This morning, ProShares will release the first Bitcoin ETF that tracks Bitcoin futures. To people’s surprise, the SEC has approved this, but they made sure that the futures are based on the Chicago Futures Exchange, and on futures only. This marks a major step as it allows for investors to have exposure to Bitcoin even though they don’t really own it directly, which allows them to bypass some crypto rules in other countries. Prices won’t be accurate to Bitcoin’s value all the time as different exchanges show a different price, often varying by as much as 5 percent, but ProShares has made sure that the Chicago Futures Exchange would be the most accurate and the safest. It seems that with all the shade being thrown at the cryptocurrency industry, they just keep ploughing through it and gaining new achievements here and there. Bitcoin price strength has come through too, with the price sitting at 60,000 dollars once again. Do you believe the sky is bright for Bitcoin and will other cryptos get their own ETF in the coming months?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
Originally published at https://invstr.com on October 19, 2021.