The Bitcoin exchange-traded funds (ETFs) make it easy to invest in Bitcoin without dealing with complicated crypto trading platforms. Like stocks, ETFs can be bought, sold, and traded on a stock exchange. Bitcoin can be bought, sold, and traded using a familiar and safe vehicle, making it easier for anyone to do.
Investing in commodities, currencies, and companies that are environmentally friendly or diverse with ETFs is popular; they have been around for a while. You can buy a bunch of stuff with ETFs without buying one separately.
In the US, you cannot invest in Bitcoin directly with ETFs. However, some ETFs allow you to track Bitcoin futures. There is one big difference between them – a Bitcoin futures ETF invests in contracts based on Bitcoin’s price, and a spot Bitcoin ETF invests in real Bitcoin.
Adding a Bitcoin ETF to the US investors can open up new opportunities for them. Since news broke that asset management giant BlackRock was considering filing for an ETF application, there has been renewed optimism about bitcoin ETFs.
The Bitcoin ETF is a new investment tool that could make Bitcoin easier to invest in for regular people. If you are into Bitcoin, you may have another option soon.
Bitcoin futures ETF: What is it?
The Bitcoin futures exchange-traded funds (ETFs) let you invest in Bitcoin without owning it. A traditional stock exchange trades these funds, giving investors easy access to cryptocurrency.
A bitcoin ETF tracks the current BTC price today so that investors can buy shares instead of bitcoins. The technical aspects of buying and storing cryptocurrency are simplified, so it is more convenient for people.
What is the need for a Bitcoin ETF?
For most investors, buying cryptocurrencies is still considered a matter of great risk that involves treading in uncharted territories. They need to manage private keys, security, storage, and purchasing a hardware wallet – basically managing several things at once, which can be simplified to a great extent by investing in a Bitcoin ETF.
Bitcoin ETF’s goals
A Bitcoin ETF makes investing in Bitcoin easier without the hassle and expense of buying it directly. This is because they offer a more familiar investment and do not require complicated security procedures or a lot of money to get started. So, more people could benefit from investing in Bitcoin.
Keeping Bitcoin secure from hackers is essential if you possess it. Even if you do not own cryptocurrency, you still have a security key that helps protect it. When you purchase cryptocurrency on a website, you may allow them to hold your keys on your behalf. However, sometimes these websites are hacked, which could result in the loss of cryptocurrency. While there are several methods of keeping your keys secure, they could be better. The key thing to remember is that if you purchase an ETF, you are not purchasing cryptocurrencies – you are simply purchasing shares in a firm that invests in them.
Many people have a hard time investing in Bitcoin because of its price. But an ETF called Proshares Bitcoin futures just emerged on the New York Stock Exchange (NYSE). It was launched when Bitcoin was at its peak value of almost $69,000 per BTC. The price went from under $17,000 to about $20,000 to $30,000 per BTC in the following years. After a slight increase since late 2022, the price is now around $27,500.
If you are considering buying Bitcoin, you might think prices are lower now. Unfortunately, Bitcoin is still expensive for many individuals. You do not have to worry; there is a fix! You can instead invest in ETFs. With Bitcoin ETFs, you get exposure to the cryptocurrency without buying it all. Doing this lets your investment fit your budget, risk level, and overall goal.
With a Bitcoin ETF, a greater level of trust and acceptance of Bitcoin investments can be instilled among the US public. Once the SEC approves a Bitcoin ETF, institutional investors can speculate better on Bitcoin market prices, which are likely to skyrocket further! It can also encourage regular investors to go for bitcoin-related stocks and other low-risk instruments and gain some exposure to the enticing crypto market.