DIKSIA.COM - JAKARTA, Bitcoin ETF (Exchange-Traded Fund) is an investment vehicle for investors.
Each ETF is tied to an index and ETF performance reflects the performance of the underlying index.
Indices can consist of a mixed crypto portfolio or indices tied only to Bitcoin prices.
This removes concerns about the security or storage of bitcoin, as investors' money is tied to the price and not the digital asset.
Resna Raniadi, Operations Vice President of Upbit Indonesia, said that investors don't have to worry about the safety of bitcoin ETFs.
“Investors don't need to worry about their wallet getting damaged or lost – there is only money on the market that follows the price of bitcoin, so bitcoin ETFs offer an easier way for investors to invest without having to delve into the world of bitcoin and crypto directly,” Resna said on Tuesday (07/18/2023).
However, Bitcoin ETFs still face various obstacles from the SEC (Security Exchange Commission).
Finally, in late 2021, the SEC officially approved the first Bitcoin futures-based ETF, namely “BITO”, which began trading on the Chicago Mercantile Exchange (CME) in October 2021.
Also this year, the SEC finally allowed leveraged Bitcoin ETFs to be traded in the United States.
The Bitcoin ETF offered by Volatility Shares is called “2x Bitcoin Strategy ETF” (BITX) and started trading on the Chicago Board Options Exchange (CBOE) on Tuesday (06/27/2023).
The announcement of the leveraged Bitcoin ETF listing had a positive impact on the crypto market.
According to cryptocurrency movements, the price of BTC reached $26,953, up more than 3.5 percent in a week.
Ethereum is also up 3.5 percent in the last 24 hours.
“The SEC's policy of approving leveraged Bitcoin ETFs is certainly having positive implications as we hope to attract institutional investors into the crypto market, which is expected to inject significant liquidity, allowing demand in the market to increase,” he added.
Resna added that this policy has had a positive impact on the progress of the cryptocurrency industry.
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The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Cryptocurrency investments are subject to market risks, and readers should exercise caution and do their due diligence.
