Ground Report | New Delhi: What is Bitcoin ETF; The bitcoin has resumed the rises before the imminent premiere, probably this Tuesday, of Proshares Bitcoin Strategy, the first exchange-traded fund (ETF) linked to this cryptocurrency in the United States.
The virtual currency grew 5.3% this Monday, to $ 62,180, a few hours after midnight the deadline for the US Securities Market Commission (SEC) to oppose the launch of the new product ends, although everything indicates that it will not prevent it.
According to experts, the launch of cryptocurrency-related funds on the market can contribute to increasing the legitimacy of these currencies and facilitating access for large institutional investors.
What is Bitcoin ETF?
Bitcoin ETF is an investment fund that is traded on a stock exchange. You could say that it is a combination of a mutual fund and a stock. The company represents the investment portfolio and investors access the fund by purchasing the shares. It works very similarly to a company that sells its shares on the stock market.
With popularity greater than ever among the general public, there are many people interested in acquiring bitcoin. But many crypto-curious still view buying bitcoin from a cryptocurrency exchange as an intimidating and opaque process. The technical aspects of holding bitcoins – such as Bitcoin Wallets, bitcoin addresses, and private keys – are confusing for newcomers and scare away some investors.
All of this has heightened the appeal of a Bitcoin ETF or exchange-traded fund. While Canada now has three BTC ETFs, the United States has yet to approve trading, let alone France.
Traditional exchange platforms allow trading with this type of vehicle, allowing ETFs to be listed on multiple markets. But without any of these platforms having to face the technical complexity of the integration of the Bitcoin protocol, or other crypto-currencies, or their management, their security, their updates. In other words, the integration of the crypto ecosystem into traditional markets is simplified.