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ETFs are almost there: here are the implications



It's widely believed that BTC-based ETFs will get a green light from SEC, but what it really means?



17.Oct.21 7:22 AM
By Shawn Highstraw
Photo toinnov.com

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ETFs are almost there: here are the implications
It's widely believed that BTC-based ETFs will get a green light from SEC, but what it really means?

After years of waiting, the time has finally come. The chance is very high that next Monday, the first bitcoin (BTC) exchange-traded fund (ETF) or exchange traded fund from ProShares launched on the US market.

This development was warmly welcomed by the crypto community and following the news the rate of bitcoin almost reached a new all-time high. With listed bitcoin funds on the US stock exchange, exposure to cryptocurrency becomes more easily available to a large number of investors.

The professional traders on the stock exchange in particular will rub their hands on the future prospects of bitcoin futures ETFs, because they will be able to earn a lot of money quickly through arbitration.

Also, traditional investors who previously had some doubts about a bitcoin investment can be tempted by the ease of investing in a listed fund available on the US stock exchange.

That is not to say that retail investors can currently get exposure to bitcoin as easily as buying a share. The approved bitcoin futures ETFs are indeed rather complicated investment products. More user-friendly stock exchange funds will probably have to wait a while.

However, not everyone will be thrilled at the launch of bitcoin ETFs. one of the parties that most likely looks at recent developments with Argus eyes is Grayscale. Grayscale is a company that has been offering investment products that indirectly generate exposure to bitcoin for a long time.

The so-called Grayscale Bitcoin Trust Fund (GBTC) becomes almost irrelevant with the advent of bitcoin futures ETFs. It will simply be more attractive for investors to invest in the new ETFs than to invest in the GBTC fund of Grayscale.



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