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Bitcoin ETF allows people to easily gain access to holding Bitcoin in a nicely wrapped package.
Crypto Tolkien expressed, an exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. Basically, you own a security representing the price of Bitcoin.
Why is the Bitcoin ETF such huge news? 1) Easily available 2) Let’s in a huge amount of new people who want exposure to Bitcoin 3) Allows these people to invest without needing separate accounts, wallets, etc 4) Offsets risk of handling own Bitcoin 5) Mass adoption available.
What may this mean? 1) Companies that offer ETFs will buy and hold large amount of Bitcoin as a reserve. This will take a good amount of Bitcoin off the market to be sold. 2) Companies offering ETFs to their customers will have incentives to keep Bitcoin’s price up.
Ultimately, an ETF offers greater access for the ‘money class’ to get into Bitcoin, by being easier/familiar. Simply said, the more wealthy and connected people hold Bitcoin the more they also will want Bitcoin to succeed. The more people with Bitcoin = better for us all.
If people in positions of influence want Bitcoin to succeed, there will be much more resistance of banning Bitcoin or crushing regulations. It will be further embraced and backed by the majority of people.
Those who already invest want: 1. Familiarity- they’re familiar with brokerage account 2. Easy- go to familiar account and click ‘buy’ ETF offers this. This will only bring greater interest and respect for Bitcoin. This is an overwhelmingly positive development for all of us.
Otherwise, let’s say Bitcoin gets as big as everyone believes it will. People across the globe own it, businesses have it on their balance sheet, nations hold it as a reserve asset. Do you really think that market makers would not be accumulating as much as possible?
Market makers would want a huge stack of coins before this thing really takes off. They own the vast majority of assets right now, why would they not want to own a bunch of Bitcoin as well? They can’t just let the price explode right to moon as they want to buy in cheap.
They also don’t like that early investors have so many coins, and they don’t. They are desperate to shake early adopter whales of their coins, and will try however to get them to sell into fiat. Remember the market is not even $2 trillion which is tiny compared to stocks.
They will play dirty games and tricks to get your coins cheap. They are not dumb. They also see the trends that we see in adoption and growth. They know the youth prefers internet money. They know there is no ‘crypto’ money printer. They desperately want and need you to sell.
There is a reason adoption is growing. There is a reason so many powerful players are getting into the game.
