Ground Report | New Delhi: How to buy Bitcoin ETF; The reasons why a traditional investor may want to buy a Bitcoin ETF instead of bitcoin itself can be many and varied, we are going to highlight 4 that we consider being the most important:
How to buy Bitcoin ETF?
- For a traditional investor, accessing and learning how a cryptocurrency platform works is a very significant psychological barrier to access. This type of investor uses platforms and tools that they have known for years, oriented towards high frequency, which can connect various trading algorithms, and even robot-advisers to artificial intelligence.
- Cryptocurrency platforms generally do not have the legal backing of the height of a regulated, supervised , national stock exchange with the licenses the government issues to have liability insurance in the event of unforeseen disasters: such as thefts, exit scams, market manipulation.
- It makes the life of a trading platform easier to add an ETF, well you don’t have to deal with complex integrations. This means that, in turn, they have lower operating costs, which reduces service commissions and therefore is more appealing to the end user.
- Currently, Bitcoin has a high level of speculation, not much of actual use. For this reason, and coming from a more traditional mindset, many users do not see the benefit of having the ability to withdraw their bitcoins to wallets where they control the keys, so they do not need more than that. ‘a service to speculate.
How to create ETF
ETFs combine all the investments made by participants in the same fund, in order to subsequently carry out stock market transactions with said investments, as if they were bonds or shares. This allows investors to carry out transactions in the market and obtain remuneration or profits generated in the short, medium or long term, from the interest produced by said investments.
ALSO READ: What is Bitcoin ETF?
For example, if a company wants to issue a Bitcoin ETF, it will divide its ownership of Bitcoin into shares. You are then bought and sold by stock market investors. The goal is to earn profits from these trades, and the volatility of bitcoin is implied in the process. Something very similar to managing an investment portfolio, with a much simpler and more comfortable way for investors to manage. Thus, any investor with or without experience can benefit from trading with Bitcoin.
The moment investors get a Bitcoin ETF, they are acquiring stocks, which are the index of a specific security. That is the evolution of bitcoin prices and quotes for a certain time.