Bitcoin has been ruling the crypto industry for years now. Very recently, it also entered the stock exchange market. This was made possible due to the Bitcoin ETF. It is a decent way for contemporary investors and traders to gain exposure to the bitcoin price through a trusted and familiar medium.
A bitcoin Exchange-Traded Fund is used to track bitcoin’s value. Instead of cryptocurrency trading platforms, ETFs can be purchased, traded, and sold on traditional stock exchanges. ETFs are not new and widely used in the finance industry. They can be found to acquire price exposure to various sectors and assets, including currencies and commodities, or they can be used to focus on diverse or environmentally friendly companies. There are two types of ETFs: spot and future. The distinction is that bitcoin futures ETFs are backed by bitcoin derivatives, whereas a spot bitcoin ETF is supported by actual bitcoin (BTC).
Many people are looking to the U.S. to get genuinely excited about a bitcoin ETF. Obtaining approval from the SEC (Securities and Exchange Commission) in the United States has proven difficult, with over a dozen applications and proposals turned down in recent years. For the longest time, it appeared that nothing would improve for the better, but things seem to be changing in 2022.
The SEC approved the first bitcoin futures exchange-traded funds, the ProShares Bitcoin Strategy ETF, in October 2021 and the Teucrium Bitcoin Futures ETF in April 2022. The said progress has reignited hope in the minds of some cryptocurrency venture capitalists, but as of this writing, the chances of a spot bitcoin ETF being approved remain slim.
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