Bitcoin ETF: Control, Profits, And Types

Definition of the term Bitcoin ETF. (Photo; Doc. Coincu)

JAKARTA Recently, the term Bitcoin ETF has become increasingly banter after several leading companies such as BlackRock and other investment bank giants submitted a Bitcoin ETF proposal to US regulator, SEC. Bitcoin ETF seems very important and has the potential to influence the crypto market.

For those who don't know what Bitcoin ETF is, don't worry because we will discuss the understanding of Bitcoin ETF and why this is so important in the world of crypto investment.

Bitcoin ETF Understanding

Bitcoin ETF stands for Exchange-Trad Bitcoin. This is the type of investment that allows investors to buy and sell Bitcoin like common stock on stock exchanges.

Bitcoin ETF is a type of securities whose value follows the price of Bitcoin. It can be traded on traditional exchanges, similar to that of ordinary companies. However, what makes it special is, with Bitcoin ETF, you don't need to take care of Bitcoin directly. It's like owning a stake whose value depends on Bitcoin.

Bitcoin ETF Profits

What makes Bitcoin ETF interesting? Well, with Bitcoin ETF, you don't have to worry about how to store crypto or the risk of losing your digital wallet key. This makes investing in Bitcoin simpler and less risky.

Bitcoin ETF Types

However, keep in mind that currently, Bitcoin ETF in the market is the one that tracks the price of Bitcoin futures contracts. For Bitcoin ETFs that track the price of Bitcoin spots, regulation is still an obstacle.

Why Is Bitcoin ETF Important?

Why are most people so enthusiastic about Bitcoin ETF? First of all, Bitcoin is not an easy-to-manage asset. A process like a custodial for a large institution is complicated. This makes many investors find it difficult and scary to deal with Bitcoin.

The presence of the Bitcoin ETF is considered to be able to provide convenience for institutional investors. Investors don't have to worry about personal keys (private key), storage, or security. They just need to own stocks in the ETF, similar to ordinary stocks. This gives them access to the crypto market without having to bother buying and storing crypto.

In addition, if the SEC (Securities and Exchange Commission) approves for Bitcoin ETF, it will open the door for institutional investors to more easily access Bitcoin. At the same time, Bitcoin is claimed to be more relevant on Wall Street, and this is expected to provide a major boost to BTC prices, given the flow of new funds into the market.

With the development of the crypto world, Bitcoin ETF is an important step towards integration with traditional financial markets. This can change the way investors view and interact with Bitcoin, and of course, this is a positive thing for the crypto market.