Online Share Trading

All About Bitcoin ETF's

Despite being volatile, Bitcon's market capitalization and value have seen unprecedented fluctuations this year. It reached a high point during the bull run and then fell to a mere 600 billion USD market cap just a few months later. According to Statista, it is currently estimated at 602 million USD (as of 21 July 2002). Are Bitcoin ETFs (exchange-traded fund) the next step in the evolution of and acceptance for this virtual currency?
Because Bitcoin is a decentralized and unregulated digital currency, it's not easy to see and understand the factors that influence fluctuations. However, Bitcoin is still a popular asset for wealthy people and companies who have a high level of risk-taking appetite, surplus cash and are willing to diversify their portfolios. This trend is being embraced by many tech-savvy millennials, who have opened up several cryptocurrency exchanges and allowed smaller percentages of investments.

Recent History

A Bitcoin ETF was originally proposed almost eight years ago by the then-exiting US administrations. It was met with a rather cold reception towards Bitcoin and crypto generally. All efforts to file an ETF application were ignored, as the US Dollar was the preferred currency worldwide.
The current US administration has raised the possibility that regulators such as the SEC may be open to the idea and could be considering giving the green light to a Bitcoin (BTC), ETF. It may become a reality, if reports are to be believed. This anticipation has already caused great excitement within the crypto ecosystem, and led to a rise of financial institutions offering products that are exposed to crypto currencies. According to reports, almost a dozen Bitcoin ETF filings are currently awaiting approval. It is difficult to resist the excitement and perceived allure of crypto. There is already a Close Ended Fund (CEF), which allows people to invest in trusts, which then invests in Bitcoin. Although it is still a complex solution, it allows risk-accepting investors to get Bitcoin exposure without an official ETF. These trusts and funds will be eliminated by the launch of an ETF.

What could be the perceived impact

A BTC ETF was launched in Canada earlier this year. The ETF's value grew steadily despite the decline in BTC. This was the most obvious effect.. An ETF will provide investors with the opportunity to directly invest without having to use unregulated and complex coin exchanges. This will require and thereby result in a more structured cryptocurrency ecosystem. This should lead to less volatility and greater transparency. This could influence the opinions of regulators in countries like India, which have been slow to embrace digital tokens and block chain. The technology hubs of Asia, particularly the "Asian Tigers" countries such as Singapore, South Korea, and Taiwan, are already eager to be incubators for crypto and blockchain, making it easy to trade and keeping it well-regulated. At least, that's the goal.

The Indian Context

The Hon. The ban on crypto trading that was imposed by the RBI several years ago was rescinded by the Hon. Although it has received some validation from investors, it is still far from being fully legalized and regulated. Cryptocurrency is a lucrative option for Indian millennials because of its potential high rewards but high risks. This could also be due to the significant increase in tech savvy in India, significant improvement in network infrastructure, as well as global exposure. Another attractive factor that has contributed to blockchain's popularity is its peer-to-peer network. Many cryptocurrency / coin exchanges have emerged to assist investors in buying and selling digital currency. They take a commission or other fees.

In Summation

A BTC ETF could become a reality if the US follows the Canadian regulatory path. Many people believe that the benefits of an ETF outweigh any perceived disadvantages. It will make crypto more accessible, and make it more legal and accepted by a wider audience. This will allow for proper regulation and monitoring. This will bring stability to this volatile asset.
ETFs are expected to dispel the myths and technical complexities surrounding crypto, as well as the need for exchanges of crypto wallets. An ETF will provide you with the benefit of Bitcoin's value based on your investment, but without any actual ownership. The concept of Gold ETFs India can be compared to this. You are given the value of the bitcoin based on the amount you invest, but don't own any actual gold.
Based on current information, an Indian BTC-based ETF seems to be a bit further off than it appears.

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