The rise in the value of bitcoins during the last couple of months has been unprecedented. The value has broken all previous records and investors are excited regarding the prospects that we have on our hands. While investors rejoice over the rise in the crypto’s value, they also have the threat of volatility looming over their head. If the rise in the last couple of months has proven anything, it is that bitcoin is really volatile and it may be a matter of time before this volatility starts having a negative experience rather than a positive one.
Although there are many reasons that have played the role in supporting the rise in bitcoin’s volatility, speculations regarding Bitcoin ETF may just be the biggest protagonist behind this steep upwards curve.
What is Bitcoin ETF?
Since most people don’t know what bitcoin ETF means, it would be pertinent to first understand this term and then ponder over when we can expect it in the future. Bitcoin ETF is basically bitcoin’s entry in to the Exchnage Trade Fund or ETF in the US. The Securities and Exchanges Commission of the United States has denied all claims that Bitcoin ETF will soon be a part of the stock market.
To be honest the history of bitcoin ETF and SEC has been plagued with conflicts of all sorts. Numerous stakeholders have vied to introduce bitcoin ETF into the market, but they have been met with a stringent response by SEC. However, a fresh wave of speculations from the center of bitcoin activity suggests that bitcoin ETF is well on its way to become a part of the stock exchange soon.
The ETF works in a way similar to all other shares. Shares for bitcoin will be available in the stock exchange like any other share. Interested investors could thus, put their money on bitcoin’s rapid rise in a more regulated and secure environment.
The Bitcoin ETF will make investing in the cryptocurrency easier for most of the investors. Many investors have held themselves back from investing in the currency due to the lack of proper regulations. Bitcoin’s introduction in the ETF market could mean that more investors could enjoy the benefits of bitcoins rapid rise.
When will it happen?
As of now, the release process of bitcoin ETF has not been streamlined. SEC, the body responsible for regulation the stock exchange, has on numerous occasions in the past, barred firms from introducing bitcoin ETF to the stock exchange.
However, all of this may about to change since bitcoin recently became part of the futures market. With bitcoin being traded in the futures market now, one can safely assume that the bitcoin etf is not far off.