ETF’s have only been around since the 1990s and were invented to combine the best features of two other popular investment vehicles: stocks and index funds.
ETFs take the best of both worlds by creating an asset that trades like a stock but has exposure to one or more assets like an index fund.
Most ETF regulations are set by the Securities and Exchange Commission or the SEC, which is also the authority ETF funds need to register with if they want to list on an exchange.
🔐Greyscale Bitcoin Trust🔐
Like the Bitcoin ETF, the goal of the Grayscale Bitcoin Trust is to provide a way for legacy investors to get “safe” exposure to Bitcoin.
GBTC functions quite literally like shares in a company. ETFs also have shares, but these shares are created or destroyed based on the supply and demand for the asset or basket of assets it represents.
🍁Canadian Bitcoin ETFs🍁
Purpose Investments listed three Bitcoin ETF’s on the Toronto Stock Exchange on February 18th. In just over two months, they have amassed over 750 million US dollars’ worth of Bitcoin.
More recently, Evolve Investments and Galaxy Digital received approval for their Canadian Bitcoin ETFs, which are now backed by an additional 250 million dollars’ worth of Bitcoin.
🤼US Bitcoin ETF Candidates🤼
Just this year, at least 4 companies have filed for a Bitcoin ETF with the SEC.
The first is VanEck Investments, which was the first firm to take a swing at a Bitcoin ETF, and is trying again with the help of the Chicago Board Options Exchange.
The second is Valkyrie, a Texas investment firm that has been trying to get an ETF through the gates of the SEC for years.
The third is the New York Digital investments group, which has filed for a Bitcoin ETF with the support of Morgan Stanley.
The most recent is WisdomTree investments, which is actually a publicly traded company. Greyscale is likely to be the fifth company to file for a Bitcoin ETF.
📅 US Bitcoin ETF This Year?📅
There is really just one reason why the SEC has repeatedly rejected applications for a Bitcoin ETF, and that’s because Bitcoin was not a ‘mature asset’.
This has changed significantly over the last year with companies like Paypal and Tesla entering the space, as well as many famous private investors putting their money into Bitcoin.
Gary Gensler was also recently confirmed as the new SEC chair. Given that he specializes in blockchain in digital currency, it is possible he will take a more favorable stance to Bitcoin than his predecessors.
📉Bitcoin ETF & BTC Price📈
A Bitcoin ETF would likely send the price of BTC through the roof. The only problem is that this could possibly signal the top of the bull market, the same way the launch of the CME Bitcoin Futures did in December 2017.
🕵️♂Bitcoin ETF Concerns🕵️♂
Not everyone believes a Bitcoin ETF is a good idea. This is because corporations could start to have an influence within Bitcoin forks and could eventually have custody of the majority of BTC in circulation.
This goes against the purpose of cryptocurrency which was to separate from the current financial system. Self-custody is also required to achieve true financial freedom.
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
