09 Feb The new Bitcoin Spot ETF
The Securities Exchange Commission has approved bitcoin spot ETF or exchange traded fund on January 10th, and so many experts are saying this is the beginning of a widespread adoption, leading the price of the bitcoin skyrocketing, but apparently, the market does not behave in the same way.
An ETFs is a pooled investment vehicle that owns a basket of underlying securities and divides ownership of those securities into shares. A pooled investment vehicle is simply an investment fund formed by pooling small investments from many individuals[1]. And now, instead of buying bitcoin directly on an exchange or cryptocurrency exchange platform, now you can invest in an exchange-traded fund, in the same way you can buy a share on Apple.
With the launch of Bitcoin spot ETFs investors can now buy Bitcoin as easily as they would buy stocks while leaving the custody of the cryptocurrency to a traditional well-regulated financial institution with a longer track record of not stealing their costumer’s money.
From this we could expect a huge wave of new investors who might have otherwise avoided cryptocurrency to now surge into the space, but so far that´s not really what we have seen, in fact, while the price of the bitcoin did jump shortly after the announcement of the ETF approval it´s since fallen from that high of nearly USD 49.000 to below USD 40.000 over the span of just a couple of weeks. [2]
January 26, 2024.
Image by frimufilms on Freepick.
[1] https://www6.royalbank.com/en/di/hubs/investing-academy/chapter/what-is-an-etf/k6sij6da/k6sij6do
[2] Precio del bitcoin Feb 8, 2024 | Statista. (2024, 9 febrero). Statista. https://es.statista.com/estadisticas/1236504/bitcoin-historial-de-precios/
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