The significance of first Bitcoin ETF

The first ever Bitcoin Exchange Traded Fund (ETF) was launched in 2015. I have discussed that event in my last post. Today I gonna explain some significance of this event in 2015. That event brought Bitcoin into the mainstream financial markets. Before that, if you wanted to invest in Bitcoin, you had to go through all these online exchanges. You could use digital wallets but there were worry about security. It was a hassle, to say the least. But with the launch of BTC ETF, suddenly Bitcoin became more accessible to traditional investors who were used to trading stocks and bonds through their brokerage accounts.

Another thing was legitimacy. Bitcoin, being this new digital thing, had its fair share of skeptics. Some folks thought it was shady or even illegal because of its association with things like the dark web and online crime. But when a big financial institution like the BIT came along and said, "Hey, we're creating a product that lets you invest in Bitcoin through regulated channels," it added a layer of legitimacy to the whole Bitcoin scene. It was like Bitcoin was putting on a suit & tie and showing up at Wall Street's doorstep.

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The Securities and Exchange Commission (SEC) regulates these kinds of financial products in the U.S. They had concerns about things like liquidity and security. Again Bitcoin was too volatile for mainstream investors. It was a bit of a waiting game to see if the SEC would give the green light.

But eventually, in 2015, the BIT got the go-ahead from the SEC to start trading on the OTC Markets (that's Over-The-Counter, not your local drugstore). This meant that investors could now buy and sell shares of the BIT through their brokerage accounts. This is just like they would with any other stock. It did make it easier for investors to get exposure to Bitcoin's price movements.

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VEIGO (Community Mod)

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