Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impacts?
Hello Steemians!
In early January 2024, the SEC approved BTC ETF Spot trading which made everyone in the crypto industry very happy because more opportunities would be open in the crypto industry.
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Bitcoin ETF is what I have discussed here following the contest tips organized in the SteemitCryptoAcademy community.
What is a Bitcoin ETF, and how does it differ from owning bitcoins directly?
A Bitcoin ETF is what allows Investors to add cryptocurrency like Bitcoin and other approved crypto to their Investment portfolio.
In this case, it is a traditional means of buying Bitcoin from a brokerage account. Well, this meaning is just a layman's understanding, and as an advanced person in the crypto industry, more explanation has been shared.
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A Bitcoin EFT is a way of allowing Investors to buy Bitcoin directly which is managed by an investment company that has listed Bitcoin on a traditional stock exchange.
As we have earlier introduced in this post, in early January 2024, a spot Bitcoin ETF trading was approved before then Investors were afraid which made the price of Bitcoin go down.
However, now the Spot Bitcoin ETF has been approved we are seeing an increase in the price of Bitcoin which as at the time of writing this post, Bitcoin is trading at $43,780.65.
The price increase is because Investors are now traditionally buying cryptocurrency instead of buying from a crypto exchange directly.
Trading Bitcoin and other crypto directly using a crypto exchange looks difficult for some types of investors, but with the approval of Bitcoin EFT Investors who can't trade Bitcoin using a crypto exchange would be able to trade Bitcoin in a traditional exchange like a stock exchange and other which are provided by Investment firm.
Owning Bitcoins directly and owning Bitcoins through Bitcoin ETF is all a way of exposing Investors to cryptocurrencies like Bitcoin and others. Both means of owning Bitcoins allow Investors to expand their portfolios. Although below are the major differences.
For Investors who want to own bitcoins through Bitcoin ETF, Investors will spend more money as buying through Bitcoin ETF usually comes with high fees and less control, which the control is the advantage that Investors get from owning Bitcoins through Bitcoin ETF.
Investors who want to promote the crypto industry will always want to own Bitcoins directly through crypto exchanges to avoid paying a high fee and the ability to trade Bitcoins at any time and day. In summary, below is how Bitcoin ETF differs from owning Bitcoins directly in a tabular form.
| Owning Bitcoin through Bitcoin ETF | Owning Bitcoin Directly |
|---|---|
| It is convenient for Investors who aren't crypto enthusiastic | It seems to be more complicated for many Investors |
| It comes with higher fees | It comes with lower fees |
| It is less control | Investors have more control. |
How can the approval of a Bitcoin ETF by the commissioner of the American Stock Exchange SEC influence the cryptocurrency market? And why did it fall just after this approval?
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At first, when the commissioner of the American Stock Exchange SEC approved Spot Bitcoin trading the cryptocurrency market experienced a slight significantly drop in price which is because Investors want to strategize themselves better.
However, the approval of a Bitcoin ETF by the SEC is for the benefit of the crypto market as more institutional Investors will be allowed to access the crypto market through investment firms which is a traditional means of investing.
The approval of a Bitcoin ETF by the commissioner of the American Stock Exchange SEC will positively influence the cryptocurrency market by attracting more investors, to own cryptocurrency without going through a cryptocurrency exchange. It will also encourage and increase capital flows across different cryptocurrencies in the crypto market.
Profit-taking is one of the reasons, as investors may have decided to take their profits before reinvesting.
Market expectations and reality is another reason for the fall of Bitcoin and other cryptocurrencies. Investors weren't sure about the approval of the Bitcoin ETF it was just mere news or not.
Regulatory concerns. Most Investors with less knowledge, were afraid thinking that the crypto market will be regulated which led them to selling their portfolio.
How could the approval of a Bitcoin ETF by a financial authority such as the SEC contribute to the legitimacy and institutional recognition of cryptocurrencies?
The approval of a Bitcoin ETF by a financial authority such as the SEC contributes to the legitimacy and institutional recognition of cryptocurrencies by making cryptocurrencies a popular asset by spreading the news concerning the approval and debating before and after the approval.
With the approval of a Bitcoin ETF by a financial authority such as the Stock Exchange is likely to bring in more institutional Investors that will pump money into the crypto market.
Institutional Investors who were afraid of investing in cryptocurrencies because it is unregulated, will now feel more comfortable investing in cryptocurrencies. Increase Investment could lead to price stability in the crypto market.
How might the introduction of an SEC-approved Bitcoin ETF interact with the decentralized governance of the STEEM blockchain, and how might these two approaches complement or diverge investors' perspectives on asset management? digital assets?
Just as I have discussed earlier institutional Investors who were or are afraid of Investing in the crypto market because the crypto market is unregulated will now be willing to invest in the crypto market thereby pumping money into the market.
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Investors will want to invest in a project that will earn them daily rewards STEEM blockchain would be seen as the best place for earning daily rewards and as more Investors come in it is how the Steem blockchain will increase thereby making the price of STEEM high.
The approval of Bitcoin ETF by the SEC is just the beginning of a new chapter for the STEEM blockchain and another decentralized blockchain the decisions are expected to bring (trigger) more approvals and innovation in the STEEM blockchain.
As cryptocurrency will soon become generally accepted STEEM blockchain will have more use cases like STEEM shop, mall, and other services one can use STEEM for paying.
I am calling on my friends: @dave-hanny, @woka-happiness, and @vickyson to also take part in the contest.
Greetings friend,
Wow, you've really nailed it with your explanation of the SEC approved Bitcoin ETF. Your breakdown is both informative and insightful. I love how you clarified the differences between owning Bitcoin directly and through an ETF. It's clear that this approval is a positive development for the crypto market, attracting institutional investors and potentially bringing more stability to prices. Your analysis of its impact on the STEEM blockchain is super intriguing, highlighting the potential for growth and innovation. Best of luck in the contest, my friend.
Thanks for your time here sir.
Saludos @jasminemary.
La aprobación de los ETF de BTC sera muy beneficioso ara todo el mercado crypto ya que tendrá mayor volumen de capital.
El país que mas sancionaba al BTC es el primer pais que permite que se cotice a través de la segunda bolsa mas importante del mundo, el Nasdaq, digo esto ya que es un país oportunista que sabe cuando le daría el visto bueno cuando le fuera favorable a ellos.
Los ETF es la herramienta ideal ara estos grandes inversores que no tienen el conocimiento de entrar en un mercado de intercambio, con esta aprobación estamos experimentando mucha entrada de capital al mercado crypto a través de los nuevos inversores.
Te deseo éxitos en el desafió.
Thanks for encouraging and supporting me.
@jasminemary Your detailed breakdown of the SEC approved Bitcoin ETF is both informative and insightful. I appreciate how you have clarified the nuances between owning Bitcoin directly and through ETF. Its clear that the approval signifies a positive turn for the crypto market attracting institutional investors and potentially stabilizing prices. Your analysis of its impact on the STEEM blockchain is intriguing highlighting the potential for growth and innovation. Best of luck in the contest
Thanks for compliment
Hi there,
Your insightful analysis covers the potential impact of SEC approval for a Bitcoin ETF on the cryptocurrency market. The clear tabular presentation comparing direct ownership and ETF ownership aids readers in understanding key differences. You have articulated the connection between the SEC-approved Bitcoin ETF and the decentralized governance of the STEEM blockchain in an effective way.
Best of luck with the contest.
I appreciate your support and compliment. Thanks
Saludos cordiales hermosa amiga jasminemary, un placer para mi saludarte.
Los ETF, el tema en tendencia, el tema que mantiene al mundo en expectativa, ahora el precio del BTC de convierte en un activo para operar en la Bolsa de Valores, personalmente veo al BTC en manos privadas en el futuro.
Suerte en tu concurso.
TEAM 5
Congratulations! Your comment has been upvoted through steemcurator08.Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Hello friend greetings to you, hope you are doing well and good there.
ETF is owning Bitcoin without holding a complete ownership on it. It's something different from direct owning. Here you buy share through different companies and institutions. It's the same as buying share in a company or Stock exchange.
Ofcourse Bitcoin ETF approval from SEC is a good news. It will effect the entire crypto market. The BTC price will raises up with this news. It will create liquidity in the market and will also help in Legitimization of Bitcoin or other crypto currencies. People will trust more crypto currencies.
I don't know so BTC ETF approval will directly effects the STEEM governance mechanism. It's a Decentralized Blockchain having independent team, and working on it's own principles.
I wish you very best of luck in this contest.
Thank you, friend!
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