In this article we will talk about a potential release of the long-awaited Bitcoin ETF. We will look at how it is composed and why people should keep an eye on it. Keep in mind that this article is no financial advice and for entertainment purposes only. With this being said, lets jump into the article an see if this could be the start of an upcoming madness (in a positive way)!

Amazing News

Earlier in the week Bitcoin rallied up to almost its ATH on the news that the SEC is considering to finally allow the first BTC futures ETF. If this happens, I believe that this would be a huge moment for the entire crypto currency market in terms of brighter and wider acceptance throughout different sectors. This all started about a week ago when a Bloomberg article claimed that the SEC is about to allow the first US Bitcoin traded fund to begin trading for people who are familiar with the matter.

So why is this such big new? Well, not only would this allow a new way of investing into crypto but also because throughout the last five years every single request to allow a cryptocurrency related fund that would trade openly in the market for everyone to buy and sell has been denied without exception. But now, FINALLY, in the next few days the first BTC ETF could begin trading. I assume that is what investors are banking on which pushes the price of BTC to higher levels.

Bitcoin ETF

When it comes to this news, it is very important to clarify that this will be not your normal ETF. Instead, it is going to be a futures contract which is slightly different, and I will try to explain the difference. In the case of a “normal” Bitcoin ETF people/ investors would buy into a fund that directly owns Bitcoin and in return the investors receive shares of BTC on the open market. On the other hand, the futures contract ETF works like follows. Instead of buying into a fund that directly goes and buys BTC, the investors are buying into a contract to buy BTC at a certain price in the future. This means that this fund does not own any BTC at the moment, but this fund has a contract to buy it in the future. This contract will then change according to the price of Bitcoin.

This would be the first step for a broader range of institutional investors to discover the crypto space even more than they are doing now. After they find out that it is not that scary as everybody says, the next step could be the allowance of a traditional BTC ETF where the fund is actually backed by Bitcoin.

Conclusion

To finalize this article, there are still a few other thoughts. There is always a chance of the SEC to prevent this from happening in the last minute. In my opinion the chance is relatively low since like I mentioned before, the pressure on the SEC for allowing such an ETF raises tremendously. Some analysts even predict that a price for BTV of 100k USD is conservative and all in all it seems like more investors are trying to move their money from traditional investments into the crypto space. Personally, I can not wait to see how the markets will react. What about you? What do you think will happen?

I am always happy for feedback, so let me know what I can do better!
Published by ga38jem on
Publish0x|LeoFinance|Steemit|read.cash
On 19th October 2021

Sources:
https://www.cnbc.com/2021/10/15/the-sec-is-poised-to-allow-the-first-bitcoin-futures-etfs.html
https://finance.yahoo.com/news/bitcoin-100000-may-be-conservative-analyst-says-172716528.html
https://www.bloomberg.com/news/articles/2021-10-15/bitcoin-futures-etf-said-not-to-face-sec-opposition-at-deadline
https://deep-resonance.org/2021/10/18/grayscale-will-bitcoin-trust-in-btc-etf-umwandeln/