How to make money on bitcoin ETFs

Colin Baseman

The goal of creating a bitcoin ETF is to make investing in bitcoin easier and more affordable. As a result, the # 1 cryptocurrency will become more attractive. After the CME's announcement of its intention to offer bitcoin futures, its value increased dramatically. Many Wall Street investors were looking forward to the familiar trading tool.

Whether the SEC will allow a bitcoin ETF?

Many hope that the adoption of bitcoin ETFs will allow to expand the use of cryptocurrency. As a result, everyone will be able to purchase a portfolio of assets or part of it. Bitcoin ETF is designed to immediately solve 2 difficulties: secure storage of cryptographic currency and legalize it. They prevent many investors from making investments in "digital gold". Article “What is a Bitcoin ETF?” will help you better understand the work of this tool.

The US SEC has been working on the registration of bitcoin ETFs since 2016, but can not put the tool into effect. The Commission argues that there are no reliable measures to combat market manipulation and it is difficult to correctly calculate the price of an asset at the end of the day.

How can I make money on a bitcoin ETF?

If the bitcoin-ETF tool is adopted, investors who are distrustful of this volatile asset will be able to invest in the No. 1 cryptocurrency. Even approaching the creation of this Fund will lead to a rise in the price of bitcoin. Therefore, it is very simple to make money on a bitcoin ETF before it is registered by the SEC, you only need to purchase a cryptocurrency asset.

The arrival of large players on the market will increase its liquidity, make it more mature and stable. Traders have long expected the arrival of institutional investors. Many draw an analogy with gold: currently, the capitalization of the SPDR Gold ETF (GLD) is $ 35 billion., which is comparable to the capitalization of Ethereum.

The GLD tool was launched in 2003. This has led to the fact that gold quotes have become better correlated with the US dollar and become more predictable. This trend has had a positive impact on the exchange rate of the precious metal. Most analysts agree that the introduction of the bitcoin ETF will have a very good impact on the entire crypto industry and will start a new milestone in it. As a result, prices will soar not only for bitcoin, but also for altcoins.

Earnings on ETF funds

When launching a bitcoin ETF, investors will no longer have to buy and sell cryptocurrency. They can make their investments in the Fund's shares. The advantages are obvious: you do not need to worry about the safety of your crypto wallet, know about the features of using digital money, and there is no risk to cooperate with unscrupulous owners of crypto exchanges.

As you can see, bitcoin ETF will allow you to earn in several ways. Fans of investing in cryptocurrency can buy bitcoin in advance and wait for the launch of the tool, which will lead to an increase in the price. Another option is to purchase shares of the Fund. Why not now buy a few thousand Satoshi and try to earn on the increase in the rate of bitcoin?