Wikicoin George Shnurenko

What is Bitcoin ETF- How to Invest in BTC ETF?

📚 Wikicoin
“What is Bitcoin ETF” has just one answer. It is investing in BTC ETF stock meaning that you do not get to worry about buying or storing
What is Bitcoin ETF- How to Invest in BTC ETF?

The release of XBT futures and BTC futures, coupled with the astronomic increase in the value of Bitcoin has caused more people to seek means of buying Bitcoin stock without investing directly in cryptocurrencies. It is then normal for questions like, “how to invest in Bitcoin ETF” to spike and we have answers to that question. So, without further ado, let’s get to it.

What is an ETF?

ETF stands for “exchange-traded fund” and describes a kind of investment fund where the price of assets like gold, stocks and oil can be tracked. These assets can then be traded on exchanges, just like conventional stocks. What this means is that investors have the option of buying and selling their holdings in this exchange-traded funds to other investors via the stock exchange.

What’s so unique about an ETF? Well, the major feature about ETFs is that they are relatively cheaper compared to mutual funds. This is because normally, ETFs are set up as passive index tracking funds. This gives investors access to the different niche markets and asset classes which are usually difficult to invest in.

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What is Bitcoin ETF?

Basically, a Bitcoin ETF is one where the underlying asset is Bitcoin. This means that when you purchase Bitcoin ETF, you’re purchasing the cryptocurrency, albeit indirectly. This is because you’re holding the Bitcoin ETF in your portfolio and this ETF tracks the real-time price of Bitcoin. Therefore, the difference is that when you invest in Bitcoin ETF, you have the luxury of trading Bitcoins without the struggles of buying and storing it.

Benefits of a Bitcoin ETF

Now that we’ve got the issue of “what is Bitcoin ETF?” out of the way, let’s explore some of the benefits of having Bitcoins as an asset class on an exchange-traded fund. One existing drawback to investing in Bitcoin is the complexity surrounding it. However, with the advent of Bitcoin ETF, the cryptocurrency will become open to a diverse set of investors.

This means that investors who were willing but hitherto unable can now invest in Bitcoin the way they would do for mutual funds and pension funds.

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We’ve established that as a result of the advent of ETF, the crypto market will have new entrants. It is then expected that Bitcoin ETFs will cause the value of Bitcoin to surge. This is in tandem with the occurrence in the early 2000s where ETF for gold was set up and the price of gold surged drastically.

How to Invest in Bitcoin ETF- What is involved?

To begin the process, you need to do is to open an account with one of the existing brokers. After doing this, get access to the account and proceed to fund the account. Then, you can navigate to the tab where you can trade. Search for your preferred investment trust and take note of the conditions attached to doing business. This is extremely important.

After doing this, you’re free to decide on any amount of shares you want to purchase and then choose the type of order. Some platforms give you an opportunity to preview your order and this is just to ensure that everything is in order. Be sure to confirm that you have the correct details of the order and then proceed to authenticate the transaction.

Subsequently, you can carry out trades on the same platform without the need for a crypto wallet or a digital exchange.

How to invest in Bitcoin ETF- Where to look

The Greyscale Investment’s Bitcoin Investment Trust (GBTC)

trust is a company that has a fixed amount of a particular commodity. Normally, investors come together to buy shares of this particular company and these investors are given contracts which serve to show ownership of these assets.

For example, a gold trust means that the company has a certain amount of gold that they own and investors are allowed to purchase shares that might be worth a fraction of an ounce of gold. Greyscale is a company that allows investors to purchase shares which translate to Bitcoins.

This company holds 175,000 Bitcoins and you are free to buy shares in this regard. One share of GBTC at the time of writing translates to 0.09196847 Bitcoins. Here are few things to note about GBTC.

  1. It provides an auditable ownership of cryptocurrencies via a traditional investment means. This means that the shares are in the name of the investor and can be used for tax purposes. The structure is also such that it can easily be transferred to beneficiaries.
  2. Shares of this GBTC can be held in some IRA, Roth IRA, and other similar accounts
  3. These shares can also be publicly quoted.
  4. One thing GBTC has in its favor is the array of trusted service providers backing it. Friedman LLP provides an annual audit for the firm while Davis Polk & Wardwell LLP is the legal counsel.
  5. Lastly, the assets are stored with Xapo Inc. This is a deep, cold form of storage and it is highly robust.

The future potential for Bitcoin ETF

The Commodity Futures Trading Commission (CFTC) has given a regulatory approval to include Bitcoin futures on the CME (Chicago Mercantile Exchange & Chicago Board of Trade) and the CBOE (Chicago Board Options Exchange). This is quite radical when you think of it and it opens the door for potential Bitcoin ETFs.

Being the major financial regulator in the United States, this regulatory approval can be hailed as a holy grail in the crypto scene. As a result, Bitcoin ETFs can be based on the regulated, publicly traded, and generally standardized Bitcoin futures.  

Conclusion

Different strokes for different folks. Whether your question was “how to invest in Bitcoin ETF?” or you just wanted to get an idea of the topic, this article must’ve gone above and beyond, opening your eyes to the potentials of Bitcoin ETF.

Wikicoin
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Crypto Gags Heewon Jang

¡ Los Tres Amigos !

Crypto Gags
Check out our Spanish version !!
¡ Los Tres Amigos !

Share it with your friends and don't forget to subscribe!

Сheck daily our Instagram: cryptosharq,

Twitter: CryptoComes

Telegram: @cryptocomes

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Crypto Gags Heewon Jang

No Ripple News, We Just Remind You It Exists

Crypto Gags
Do you still invest in it ?
No Ripple News, We Just Remind You It Exists

Share it with your friends and don't forget to subscribe!

Сheck daily our Instagram: cryptosharq,

Twitter: CryptoComes

Telegram: @cryptocomes

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Coins Guide George Shnurenko

How to buy Monero (XMR) in USA: A Step-by-Step Guide

🎓 Coins Guide
The anonymity has made Monero popular.
How to buy Monero (XMR) in USA: A Step-by-Step Guide

Frankly speaking, up to the present moment monero has been in the list of the most amazing existing cryptocurrencies. For example, such currencies as Ethereum and NEO are not so popular. Tokens like, for instance, Ripple try to make the seamless transactions. In its turn, monero is concentrated on supporting its users as much individual privacy as it is possible.

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In order to protect its participants monero uses some important innovative tools, the most requested of which is the ring signature. The anonymity has made Monero popular. However, before starting using it, it is recommended to understand the main principles of monero working as well as its peculiar features.

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David Dinkins

Cryptocurrency Community Reacts to News of Google Ad Ban: No Big Deal

Mainstream media is under the impression that Google’s ban on crypto advertisements is tanking the market, but the community seems to be shrugging off the news.
Cryptocurrency Community Reacts to News of Google Ad Ban: No Big Deal

The cryptocurrency community has generally reacted with optimism to Google’s ban of digital currency and ICO ads. But how can this be? A quick perusal of mainstream media outlets makes the situation look dire for Bitcoin, with headlines such as:

CNBC: Bitcoin briefly falls below $8000 after Google says it will ban

Investopedia: Bitcoin price spirals toward $8000 after Google bans

Bloomberg: Bitcoin drops to monthly low after Google bans crypto advertisements

Reuters: Google bans cryptocurrency advertisement, Bitcoin price slumps

These headlines are as amusing as they are inaccurate. For one, mainstream news outlets have no understanding of the ebb and flow of Bitcoin’s market. They assume that every rise and every fall must have a clearly explainable reason, namely, whatever the day’s biggest headline was.

Expert opinion

Several experts in the cryptocurrency community have given CryptoComes their opinion on the Google ban, and most of them are cautiously optimistic:

Christopher Slaughter, Co-Founder and CEO of Samsa, writes:

“In the short term, this may benefit the crypto community, which is overflowing with fraud and scams. Longer term, it would be good to have all channels available. Hopefully regulation and self regulation can make it safe and in Google/Facebook’s interest to offer crypto ads in the future.”

Craig Sproule, Crowd Machine Founder and CEO, agrees:

"This decision can benefit the crypto community in the long-run amidst the hype, current regulatory climate and the mainstream perception of the community given the pervasive amount of scams we're seeing. [There are] bad actors out there taking advantage of the excitement.”

Daniel Duarte, CTO of Auctus, is concerned about the ease with which scammers can target novices in the community:

"It's easy to set up a cryptocurrency wallet, create a fake website, publish the wallet's public address and collect money from people. Since Google can't analyze on a case-by-case basis and filter the scams, we believe it's better to ban them all. This will not hurt the crypto community, and ultimately is a good thing for less experienced investors.

Massive overreaction

CryptoComes published an editorial yesterday, skewering Google for their extreme overreaction. Rather than making even the slightest effort to filter out scam ads, the company just banned everything. If they did that with all advertisements, they’d be out of business.

Trey Ditto, CEO of Ditto, agrees:

“Today’s decision to ban ads on Google feels like they’re throwing the baby out with the bath water. We use Facebook and Google to educate potential investors and users about a range of topics and opportunities. I worry this punishes the good actors in this fast-growing space and will thus hurt the consumers and investors who are looking for information to make smart crypto investment decisions.”

Too many scams

Users on reddit have pointed out that since Bitcoin doesn’t have a marketing department, Google’s ban of crypto advertisements has no bearing on the currency at all. Rather, it hurts many ICO-funded projects and some altcoins that engage in advertising. However, with thousands of ICOs in the past year, and hundreds of new altcoins having emerged in that period of time, scams likely abound. Anything that can starve scammers of victims is generally welcomed, since the ban does little harm to Bitcoin in the long run.

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Coins Guide George Shnurenko

How to mine Dash for Free

🎓 Coins Guide
As mentioned above, each masternode can make a proposal concerning implementation of new features, changes or marketing strategies.
How to mine Dash for Free

Decentralized Governance

If the majority of nodes disagree with the new rules, they can make a new coin which results in splitting Bitcoin by means of creating so-called “hard forks”. Hard forks represent divergence from the currency which leads to the creating of two separate blockchains with different codebase. There are already numerous Bitcoin forks (including Bitcoin Gold, Bitcoin Cash and even Dash) which can potentially damage the value of the currency. In order to avoid such fragmentation, Dash has established an innovative decentralized blockchain-governance model.

As mentioned above, each masternode can make a proposal concerning implementation of new features, changes or marketing strategies. Each power user has exactly one vote, but if he operates more than one masternode the number of his votes proportionally increases (for example, 10 masterdones = 10 votes). For a certain proposal to be enacted, the number of votes in favor of the proposal should be higher than those opposing it by at least 10%. If a new change or proposal is approved, it gets money from the block reward.

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There are currently about 4,700 masternodes on the Dash network which are owned by about one thousand operators. At the same time there is a team of developers who have to make regular coding decision. Of course, it doesn’t make any sense for all power users to vote on every day-to-day decision. But when the current tack of the development team contradicts with the vision of investors, their funding can be cut. Furthermore, masternodes have the authority to fire the current developers and hire new programmers.

Another major advantage of the decentralized voting system is its transparency. The general public has access to all the proposals and voting results. Even those who are not members of the Dash network can view all current projects at https://dashvotetracker.com/ and see the number of votes. Such an approach is undoubtedly more progressive compared to major cryptocurrencies like Bitcoin and Ethereum which are still far too centralized

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