ETF and its impact to Bitcoin

July 14, 2018

What is ETF?

The abbreviation ETF is “exchange-traded fund”. This is an investment where the assets’ price can be monitored. Thus, the investors are able to sell and buy the savings, which are stored in the stock investment fund, to other investors through the exchange.

What is BTC ETF?

Generally, Bitcoin ETF is a fund, in which an asset is bitcoin. Thus, if you buy BTC ETF, you acquire a crypto, albeit indirectly. That’s because you store the ETF in your account, and it monitors the actual cost of bitcoins. In case you invest in BTC ETF, you can take advantage of bitcoin trading without issues with keeping and buying it.

What effect does it have on Bitcoin?

The fact, that Wallstreet firms apply ETF is a signal that large amounts of money are going to be transferred to the cryptocurrency markets through ETF products. They expect, that the impact of these additional products will be incredible, meaning that if the SEC accepts the ETF, they will indirectly give green light to the main investment of all other cryptocurrencies. Consequently, trillions of funds will come to crypto markets.

When…? August 10 or later?

The approximate date of SEC’s decision is Friday, August 10, although a 45-day extension is possible. This means that the decision should be expected no later than September 24.

A high possibility? Yes!

The “unregulated” Bitcoin markets was one of the main reasons for the refusal last year. “According to the achieved results, the Commission thinks that most BTC markets are not regulated,” they admitted. But Bitcoin Futures started to be traded later this year, as large investment banks, such as JP Morgan and Goldman Sachs, began to step into cryptocurrencies.

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