Can someone explain to a layman the meaning of Bitcoin ETF?

[Fidelia]

I have been hearing in the news that the SEC has approved Bitcoin ETF. And everyone is ecstatic. I don't know what Bitcoin ETF is. What impact does the approval have on the entire crypto world? How does that benefit me who only wants to invest in Bitcoin and make money when it rises in price?

People who understand these things should be kind enough to educate us.

 

[magnus2022]

First, before going into bitcoin ETF, there is need to understand what ETFs means exchange traded funds. SEC is stock exchange commission. It is SEC that approves funds which are traded on the exchange. Bitcoin ETF simply means exchange traded funds that include bitcoin and its derivatives.

 

[codescript94]

Bitcoin is not the best crypto to invest in at the moment, there are several other altcoins that were born and have a greater probability of growth than bitcoin, just do a good search on Binance or any other exchange of your choice and you will find these new altcoins.

 

[Mike30]

Approving Bitcoin ETF signals a maturation of the cryptocurrency market. It demonstrates a growing acceptance of Bitcoin as a legitimate asset class and can help legitimize the entire cryptocurrency ecosystem in the eyes of regulators, investors, and the general public. So, it is an important step forward for the crypto world in general. As a regular joe, you will see more business involved in crypto and the more people use it, the better to invest in cryptos. It means that at any moment a big company can announce its adoption and the price of Bitcoin may sky-rock.

 

[Fidelia]

I still don't understand what that means. Does it mean that bitcoin is now listed in the stock exchange as an investment commodity for people to buy.

 

[Mike30]

I still don't understand what that means. Does it mean that bitcoin is now listed in the stock exchange as an investment commodity for people to buy.

It means you can invest in Bitcoin ETFs. (not directly buying bitcoins, but buying shares on those funds)
Here are some ETFs where you can invest/trade for example:

 

[Suba]

Bitcoin ETF is a type of security (with Bitcoin value), which is traded on exchanges such as NASDAQ or NYSE etc. The Bitcoin ETF was created by an ETF investment manager who bought Bitcoin on the crypto market, then the investment manager securitized the Bitcoin which could be bought and sold on the stock exchange. So you as a trader don't need to own Bitcoin physically.

 

[kerryjoy]

I still don't understand what that means. Does it imply that Bitcoin is now listed on the stock exchange as an investment commodity for people to buy?

 

[Suba]

I still don't understand what that means. Does it imply that Bitcoin is now listed on the stock exchange as an investment commodity for people to buy?

That's right, Bitcoin has been listed on the stock exchange, but not in physical form so you don't need a crypto wallet, but Bitcoin is listed as a security or stock.

 

[SilverLance]

Approval of Bitcoin ETF by the SEC is a significant development in the world of crypto. An ETF, or exchange-traded fund, is a type of investment fund that tracks the price of an asset, in this case, Bitcoin. This means that investors can now buy and sell shares of the ETF on traditional stock exchanges, making it easier for them to invest in Bitcoin without actually owning the digital currency itself.