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Topic: Bitcoin ETF, what is it really? (Read 530 times)

BitcoinPanther (OP)

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Bitcoin ETF, what is it really?

August 20, 2018, 03:49:13 AM

#1

The news of Bitcoin ETF has taken center stage for the past months, but what is it really? And what good will it do to crypto users?

To shed a little bit of light, ETF is an acronym for Exchange-Traded Fund. It is a passive investing instrument that has an underlying asset, and in the case of Bitcoin ETF, bitcoin is the underlying asset.

Why ETF? Primarily, ETF does not require professional trading skills unlike others such as mutual funds. You need not be a professional trader. It has a low operating expenses with no investment minimums. Thus, everyone gets to invest on Bitcoin ETF easily.

Will Bitcoin ETF split the Bitcoin economy into two? Well, as stated earlier, Bitcoin is the underlying asset of Bitcoin ETF, thus, investing and trading on Bitcoin ETF will only strengthen bitcoin itself.

Then why not invest and trade on bitcoin alone? With Bitcoin ETF, one need not bother about technicalities that involves safe keeping of your digital asset. All is taken care of plus the fact that your asset is moving on a busy market along with other popular ETFs.

Lastly, i do believe that Bitcoin ETF is another gear towards cryptocurrency adoption which is really really good for the entire crypto economy.

What are your thoughts?

lovesybitz

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 02:17:17 PM

#2

I agree with you. Bitcoin ETF is indeed a good platform for more adoption in a globale scale. Once listed, the notion that only techie people can be involved in bitcoin investment will be a thing of the past.

I like it when you point out that technicalities such as creating a wallet and maintaining access on it is not a necessity anymore. It is really a good pitch for non-techie investors. All they have to know is that bitcoin is a great and potential investment and they're all set.

Samarkand

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 02:22:01 PM

#3

Quote from: BitcoinPanther on August 20, 2018, 03:49:13 AM

...
It has a low operating expenses with no investment minimums.
...

This depends on the details of the respective ETF.

E.g. the new VanEck SolidX Bitcoin Trust (the 3rd attempt
of VanEck to get a Bitcoin ETF approved by the SEC) has a
investment minimum of 200k $.

Quote

Each share of the VanEck SolidX Bitcoin Trust is set to cost a hefty $200,000,
according to a filing with the Securities and Exchange Commission on Wednesday.

https://www.cnbc.com/2018/06/06/vaneck-tries-a-third-time-for-a-bitcoin-etf.html

Even if the VanEck ETF gets approved, which is looking unlikely at the moment,
the investment minimum will make a participation for most people impossible.

Giardina

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 02:25:52 PM

#4

The topic of bitcoin is the most popular in the last year,it is a good indicator.More and more people understand the value of bitcoin both as an investment and as a progressive phenomenon.

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BitcoinPanther (OP)

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 03:53:19 PM

#5

Quote from: Samarkand on August 20, 2018, 02:22:01 PM

This depends on the details of the respective ETF.

E.g. the new VanEck SolidX Bitcoin Trust (the 3rd attempt
of VanEck to get a Bitcoin ETF approved by the SEC) has a
investment minimum of 200k $.

Quote

Each share of the VanEck SolidX Bitcoin Trust is set to cost a hefty $200,000,
according to a filing with the Securities and Exchange Commission on Wednesday.

https://www.cnbc.com/2018/06/06/vaneck-tries-a-third-time-for-a-bitcoin-etf.html

Even if the VanEck ETF gets approved, which is looking unlikely at the moment,
the investment minimum will make a participation for most people impossible.

Thank you for shedding more light on the bitcoin ETF Samarkand. It is good to note that respective ETF will have differing details and yes, investment minimums too. But by principle, ETFs were supposed to be investment minimum free. Unfortunately (if you read further on the same article you quoted), the hefty $200,000 per share of VanEck SolidX Bitcoin Trust was intended for institutional investors and not retail ones.

I do believe that until the totality of the proposed Bitcoin ETF gets approved, most of the news we will see are partial. I will remain hopeful that retail investment will have no minimums for this passive investment instrument to remain truly ETF.

lolehiM92

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 04:11:24 PM

#6

ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

BitcoinPanther (OP)

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 04:20:06 PM

#7

Quote from: lolehiM92 on August 20, 2018, 04:11:24 PM

ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

Thank you lolehiM92 for expounding the sense of ownership when it comes to ETF.

Truly, with Bitcoin ETF, shareholders does not own any bitcoin per se. They only have stock ownership. But it is a good point to remember that liquidity remains high at all times even if one only holds an ETF.

And it is in the same sense that technicalities on safe guarding your crypto asset becames fairly easy as one does not really own an actual bitcoin at hand but gains nonetheless under the same bitcoin economy with nearly the same potential as actual bitcoin owners.

blueteam09

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 04:23:03 PM

#8

ETFs are like a passport to legitimize Bitcoin to help investors trust it. Many investors believe only in what is protected by law and many investors at the moment assume that if Bitcoin passed the ETF will rise again. Many say the ETF will be the lifeline of the Cryptocurrency market.

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 04:27:39 PM

#9

Quote from: BitcoinPanther on August 20, 2018, 03:49:13 AM

The news of Bitcoin ETF has taken center stage for the past months, but what is it really? And what good will it do to crypto users?

To shed a little bit of light, ETF is an acronym for Exchange-Traded Fund. It is a passive investing instrument that has an underlying asset, and in the case of Bitcoin ETF, bitcoin is the underlying asset.

Why ETF? Primarily, ETF does not require professional trading skills unlike others such as mutual funds. You need not be a professional trader. It has a low operating expenses with no investment minimums. Thus, everyone gets to invest on Bitcoin ETF easily.

Will Bitcoin ETF split the Bitcoin economy into two? Well, as stated earlier, Bitcoin is the underlying asset of Bitcoin ETF, thus, investing and trading on Bitcoin ETF will only strengthen bitcoin itself.

Then why not invest and trade on bitcoin alone? With Bitcoin ETF, one need not bother about technicalities that involves safe keeping of your digital asset. All is taken care of plus the fact that your asset is moving on a busy market along with other popular ETFs.

Lastly, i do believe that Bitcoin ETF is another gear towards cryptocurrency adoption which is really really good for the entire crypto economy.

What are your thoughts?

I'm concerned about the security of ETF, if it can be a safe haven for crypto I believe more mainstream interest will be aroused as more people will be sure they are safe from hacks and scams

rudox

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 04:32:38 PM

#10

ETF will really help bitcoin in having more demand and wider adoption. I am only having double mind if SEC will sanction it. I read somewhere that it will take a new entrance into the SEC basket about 240 days. This means it will be around February 2019 before we know whether ETF will be successful or not. But every postponement of the admission reflect on the market and push it further down.

BitcoinPanther (OP)

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 05:26:17 PM

#11

Quote from: blueteam09 on August 20, 2018, 04:23:03 PM

ETFs are like a passport to legitimize Bitcoin to help investors trust it. Many investors believe only in what is protected by law and many investors at the moment assume that if Bitcoin passed the ETF will rise again. Many say the ETF will be the lifeline of the Cryptocurrency market.

I really believe that bitcoin is not illegal per se inspite of it being unregulated by many governments.

But i am with you on the opinion that the Bitcoin ETF will help build trust to investors and even extend that trust to non-crypto/non-techie investors too. As you well spoke of it, many investors believe that an investment protected by law and governed by ruling authority on market and finance is a sound investment to begin with.

And yes, i do agree too that the Bitcoin ETF will be one of the many life lines that will keep the cryptocurrency market alive and afloat.

Thank you for sharing your knowledge blueteam09. I believe this way, we help others, and ourselves as well, stay relatively informed.

cuong1610

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Re: Bitcoin ETF, what is it really?

August 20, 2018, 05:35:32 PM

#12

Quote from: BitcoinPanther on August 20, 2018, 03:49:13 AM

What are your thoughts?

The Bitcoin ETF acceptable, which is really a very positive signal. And it will attract more people to join the crypto

BitcoinPanther (OP)

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 05:23:15 AM

#13

Quote from: cuong1610 on August 20, 2018, 05:35:32 PM

The Bitcoin ETF acceptable, which is really a very positive signal. And it will attract more people to join the crypto

Yes indeed cuong1610, once Bitcoin ETF gets approved, it will send a very positive signal which in turn will strengthen the confidence of possible investors, both institutional and individual.

And as it attracts more people to join the crypto economy, this will also bring cryptocurrency in the mainstream market of finance & trading. A great deal of advantage for all of us.

BitcoinPanther (OP)

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 08:37:01 AM

#14

Quote from: rudox on August 20, 2018, 04:32:38 PM

But every postponement of the admission reflect on the market and push it further down.

Hi there rudox! As much as we witness the sharp fall of bitcoin after the postponement of bitcoin etf, many experts believe that this is a good thing.

And if you read and follow articles you might gain a sense of appreciation on SEC's reasons of delaying the approval, in which, allow me to quote:

Quote

While the SEC has had to play catch-up with initial coin offerings, where companies issue their own cryptocurrencies in a crowdsale, the US regulatory body has more control over the approval and rollout of Bitcoin ETFs. In its statement on Direxion's Bitcoin ETF, the SEC said that it needed more time to decide because it wanted to allow for additional analysis.

This analysis would in part be used to determine whether or not the SEC is equipped to prevent fraudulent and manipulative acts and practices upon approval of Direxions Bitcoin ETF, and whether it could protect investors and the public interest as well as promote just and equitable principles of trade.

Read the full article here: https://www.longhash.com/news/a-delay-on-bitcoin-etfs-is-probably-a-good-thing

talkbitcoin

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:02:33 AM

#15

Quote from: BitcoinPanther on August 20, 2018, 03:49:13 AM

Why ETF? Primarily, ETF does not require professional trading skills unlike others such as mutual funds. You need not be a professional trader. It has a low operating expenses with no investment minimums. Thus, everyone gets to invest on Bitcoin ETF easily.

i am no expert but this part doesn't sound right to me. since ETF is tied to bitcoin and even though the changes may differ but it still is the same thing and you still need to have trading skills to invest in ETF and be successful. the same swings will happen there too!
as for "no investment minimum", is it lower than directly investing in bitcoin? i seriously doubt it!

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:04:24 AM

#16

ETF is very helpful to Bitcoin and the entire encryption industry. It can not only bring huge amounts of money into the market, but also greatly enhance the recognition of Bitcoin around the world.

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:40:06 AM

#17

According to my studies ETF means exchange-trade-funds it may seem as similar to mutual fund but it is different from each other . We need only a demat account for trading in ETF the market price is decided during market hours . Mutual fund is decided after the closing of the market . Mutual fund is purchased in fractions and ETF is purchased as a whole . To my concept ETF approval can help to increase the value of Bitcoin .

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:46:04 AM

#18

Thanks for the explanation, it will be a huge plus to the cryptocurrency market if it gets approved and I believe it will be eventually.SEC will bow to the pressures

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:50:02 AM

#19

Quote from: lolehiM92 on August 20, 2018, 04:11:24 PM

ETF shareholders do not directly own these assets, but instead own ETF stock ownership, which makes bitcoin etf more different than investors in ICO programs.

In addition, ETF bitcoins will not be traded in the conventional exchanges, there will be some sort of parallel market -an Over-the-counter OTC market where it will be traded.

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Re: Bitcoin ETF, what is it really?

August 21, 2018, 09:59:39 AM

#20

ETF greatly helps Bitcoin and the entire encryption industry. He can not only bring huge amounts of money to the market, but also significantly increase the recognition of bitcoins around the world. I only have a double mind if the SEC will sanction it. I read somewhere that it will take a new entrance to the SEC basket around 240 days. This means that it will be around February 2019, before we find out whether the ETF will be successful or not.

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