Digital currency bitcoin has been experiencing a rapid rise in the last couple of months. Indeed, to be exact, the value of bitcoin has reached a record high. While investors and stakeholders both fail to understand the reasons behind this sudden rise in the volatility of the price for bitcoins, we might just have the reason in our hands.
Lately, there has been growing speculation regarding the launch of United States first ever bitcoin, ETF. Although, there has been uncertainty surrounding almost every form of investment in 2017, the uncertainty in bitcoin has certainly derived from speculations regarding bitcoin ETF.
Advocates of the cryptocurrency have come to its defense after a rise in the recent uncertainty. Many advocates were quoted to have had said that this was nothing to worry about, as bitcoin had itself performed way better than any other currency from the year 2010 till now, apart from 2014 that is.
So, what are the chances of bitcoin ETF coming to the US? And even if this happens, will it be worth investing in?
Understanding Bitcoin ETF
Bitcoin’s entry into the US exchange traded fund or ETF has vehemently been denied by the Securities and Exchange Commission (SEC) as of now. But if reports from the center are to be believed, the ETF will soon be a part of the stock exchange. For beginners, the ETF works in a way that all shares do. Shares will be available for buying on the stock exchange, and interested investors can invest the sums they want in the form of shares.
This would be perfect for all investors looking to be a part of this growing market. Many investors think they are losing out because they do not understand the basics of investing in bitcoins through their computers. The availability of shares for the coins in the stock exchange will just reduce the hassle and attract more investors.
Pros and Cons
- Long Term Investment: If there is one thing that goes in favor of bitcoins and investing in it is the fact that the cryptocurrency is bound to stay here for the long run after going past the early blues.
- Negotiations with Regulators: Although, bitcoin investors are looked upon as anarchists, senior stakeholders have hinted towards playing nice with regulators for getting a better platform.
- New and Different: Bitcoin is something new and different and presents a chance for investors to step out of their comfort zones and earn crazy profits.
- Insane Volatility: The market for bitcoins is just really volatile. We have numerous investors who look out for stable opportunities and might not find this volatility attractive.
- Hackers: Because it is highly unregulated and is part of an online setup, hacking is a major hindrance towards investors that want a secure outlet for investing.
Whether bitcoin ETF comes out, remains to be seen, but one thing we can be sure of is the fact that we can expect some exciting times ahead.