Bitcoin ETF

Due to the high volatility of Bitcoin and other cryptocurrencies many investors seem to have great risks over the price stability of Bitcoin, the upcoming Bitcoin regulation cycle, keeping and ensuring the securities of private keys, and trust on cryptocurrency exchange especially during the big plunge like crypto exchanges will not block the withdrawal process. The amount invested in Bitcoin requires a great deal for the security of the private keys, you need to buy a hardware wallet to protect bitcoins, or you can select other secure methods, due to FED restriction on $10,000 withdrawal must be reported, you have to figure out the methods to calculate the capital gains tax on bitcoin earnings, in order to do invest in Bitcoin ordinary investor must learn all the complications before to dive in the crypto world.

ETF is a public investment tool, just like stock, bond, or other derivatives, it tracks the underlying asset or index for valuation or performance of the asset, basically, it is a method to obtain the value of the related objects, these ETFs can be directly traded in stock exchange whenever its related asset price falls the related ETF value should also befall.

As compare to traditional ETFs, with Bitcoin ETFs you no longer worry about the private keys, storage, and security of your Bitcoins, you only need to buy the ETF and ignore the learning costs and gain great exposure to the Bitcoin trading market. These Bitcoin ETFs remove all the obstacles in trading as well as the horror stories and myths of great risks, due to the current downfall of Bitcoin these ETFs may become the overnight rich tool even without any crypto investment experience.

The ETF is managed by a company that really holds the actual Bitcoin funds, the price of ETF is derived from the Bitcoin held funds, the company lists its ETFs options to the stock exchange, traders and investors buy and sell the ETFs same as they sell ordinary stocks, Bitcoin ETF also provides additional methods like short selling also available in Bitcoin ETFs, therefore Bitcoin ETFs are giving more choices for investors and traders.

The key difference between Bitcoin ETFs and the traditional ETFs is the dividends like those ETFs that listed in S&P 500 index are companies stocks and on the basis of performance the companies distribute the dividends among their investors, but Bitcoin ETFs does not have such features, the second important element in traditional ETFs you must pay the commission to the company that provides the ETF, but in Bitcoin ETFs, you pay the custody and management fees to the associated company.

Currently, there is no Bitcoin ETF available in the USA, from 2013 to 2020 number of ETF proposal rejected by the SEC including Winklevoss Bitcoin Trust Company proposal and Bitwise’s Bitcoin ETF proposal, the reason behind such rejection is based on the Bitcoin susceptibility to market manipulation and some exchanges poor reputation or lose restrictions, SEC also indicates the potential lack of liquidity in the cryptocurrency market as well as the transparency risks, However, institutional investors believe that sooner or later the floodgates of Bitcoin ETFs will be open to everyone.

According to sources, there are 7 high-profile Bitcoin ETF applications from Fidelity, VanEck, SkyBridge Capital, and Bitwise to the U.S. Securities and Exchange Commission (SEC) some of them are hedge funds and others are investment companies, moreover, Toronto Exchange already has three Bitcoin ETFs and Bermuda Stock Exchange has listed one Bitcoin ETF.

Source: https://medium.com/cryptocurrencies-ups-and-down/bitcoin-etf-d8576d0717e9?source=rss——-8—————–cryptocurrency