What Is A Bitcoin ETF? Overview Of Effects On Bitcoin Price

With so much recent news and hype surrounding the possibility of a "Bitcoin ETF", I thought it would be a good idea to cover exactly what an ETF was and how it basically works, along with how a Bitcoin ETF might affect the price and current movement of Bitcoin in general. I also take a look at the current standing with the SEC and when we will be getting a decision one way or another. Follow The 'Stache as we dive into what is a Bitcoin ETF!

The ETF Breakdown

First, we need to understand what an ETF is before we can really understand why a Bitcoin ETF is a big deal. ETF stands for "Exchange Traded Fund" which means that it is a security that tracks a fund or "bundle of assets". Similar to a mutual fund in some ways, and ETF gets traded just like a stock does. This makes it prone to daily price fluctuations, but is a great vehicle for traders as there is high liquidity and low fees.

The ETF fund itself actually OWNS the underlying asset and then divides that asset up into individual shares. This gives investors the opportunity to invest in the asset without having to actually hold it themselves. Basically it is an indirect way to invest in something without having to manage it or hold it yourself.





A Bitcoin EFT To The Moon

If you have spent any time in crypto you know that buying, selling, and even HODLing can be a difficult task and something you must truly learn about. Institutional investors don't want to do that so you can see why having an ETF, where they don't need to worry about any of that, is VERY appealing to larger investors. 

The SEC Approval Of An ETF

As I talk about in the video, the SEC has opened things up for comments, but now needs more time to decide on this. You can read the official documents filed and the comments already submitted here:  

https://www.sec.gov/comments/sr-cboebzx-2018-040/cboebzx2018040.htm

https://www.sec.gov/rules/sro/cboebzx/2018/34-83520.pdf

Watch the video to see what I think about exactly how this will play out and my comments on the whole process so far. Are you a BTC bull ready for this to send us to the moon, or are you looking at shorting Bitcoin thinking the CBOE will be denied it's Bitcoin ETF yet again? Leave me some comments below, but until next time...

'Stache That Crypto Friends!

Shea Newkirk

The ‘Stache
Howdy! My name is Shea Newkirk and I have been a Bitcoin supporter since 2014. I am immersing myself in the cryptocurrency world and I decided to jot down my story as things unfold. I am a designer, coder, musician, gamer, father, blogger, entrepreneur & more. Learn from my mistakes and rejoice in my triumphs because the ‘Stache is set to disrupt the crypto world!

Comments

  1. dan yu

    What is your prediction for the etf? is it coming? when? what do you think btc will go to in 2018? what about litecoin?

    be bold and make some predictions or youre content is wack

    1. The 'Stache Post
      Author
      The 'Stache

      Hi Dan, I do think the ETF will be approved although it might not be this year. If it DOES get approved this year I would expect BTC to hit an ATH. I try not to make “predictions” or give that sort of advice in my content, that doesn’t mean my content is “wack” it means that I want to help empower individuals to learn how to make their own predictions instead of just blindly following people…

Leave a Reply

Your email address will not be published. Required fields are marked *