Are we going to see the first Etf for bitcoin this year? I have seen the news on the internet that bitcoin might see its first Etf this year. What potentially could change for bitcoin. Do you think this is bad or good news??
What you may have read is the first Bitcoin ETF submission by Vaneck. Investment management firm Vaneck filed a declaration of registration with the US Securities and Exchange Commission (SEC) on December 30 to exchange and trade the Vaneck Bitcoin Trust. This application is different to the previous one because in order to achieve its investment goal the Trust will hold Bitcoins and will price its shares daily based on the report Mvis Cryptocompare Bitcoin Benchmark Rate. This rate is based on exchanges which according to MV Index Solutions GmbH, represent the top five bitcoin exchanges as per the Cryptocompare Exchange Benchmark review report. Except in liquidation or in extraordinary circumstances, the Trust does not intend to buy or sell Bitcoins directly, although it may order the trustee to sell bitcoins to cover certain costs. If successful, it will allow investors to buy ETFs without going through the complicated process of trading bitcoin alone. ETF holders will not directly invest in bitcoin itself, they will not have to worry about the complicated retention and security procedures required of cryptocurrency investors. Moreover, there is no need to deal with cryptocurrency exchanges in this process, investors will be able to simply buy and sell ETFs via traditional exchanges and markets. There is one more key benefit to focusing on the bitcoin ETF rather than the Bitcoin itself. Since an ETF is an investment instrument, investors would be able to short ETF stocks if they believed that the price of Bitcoin would fall in the future. In my opinion, this is good news because it will open the door for Bitcoin to a wider group of investors and more capital will flow to the crypto market.
The First Bitcoin ETF launched in Canada by 3iQ digital asset management where Gemini was added as his guardian, who will hold the assets of clients outside of Canada. Arxnovum's second Bitcoin ETF is likely to receive a green light from the Canadian regulator. The next possible step is undoubtedly a Bitcoin ETF that would allow pension schemes, mutual funds, company balance sheets, and broader finance to add Bitcoin to their accounts. Which would be a positive news and brings wider adoption for Bitcoin and cryptocurrency. Several companies in VanEck, Bitwise, Wilshire Phoenix, and others have attempted to negotiate with the SEC to obtain approval. However the regulator has not yet selected its first Bitcoin ETF provider for the US.