Why I would Invest In a Bitcoin ETF?
πππA new era has dawned with the approval of the first ever spot Bitcoin ETFs on Wednesday and trading begun in earnest on Thursday.
There were 11 ETFs that opened for trading on Thursday and the trading volume was USD 4.7 billion, far exceeding the USD 4 billion that analysts had been expecting.
What is a Spot Bitcoin ETF and why is it a game changer for the crypto markets?
A Bitcoin ETF is an investment fund that tracks the performance of Bitcoin. It is a way for small investors like me to gain access to the value of Bitcoin without direct owning it.
A Bitcoin ETF increases the credibility of Crypto as an asset class whereas in the past, Bitcoin maybe regarded as dicey and unreliable.
It also means that I do not have to worry about storage of my Bitcoin. It gives me more confidence that there is less likelihood of fraud as ETFs are subject to rules and regulations of the SEC.
A Bitcoin ETF means that I can hold Bitcoin in my brokerage account with Tiger which I could not do so before. I also like that I can have portfolio diversification into Bitcoin in addition to my stocks and bonds.
In the past, I can buy Bitcoin through $Coinbase Global, Inc.(COIN)$
which charges up to 0.6% on orders on its platform.
Now I can buy Bitcoin through a Bitcoin ETF. The ETF Fund managers have kicked off an unprecedented fee war in order to grab a share of the capital inflow from investors.
Blackrock's iShares Bitcoin Trust would charge 0.25% compared with 0.30% fee set earlier. ARK 21 shares Bitcoin ETF lowered its fee to 0.21% from 0.25%.
Blackrock also said that for the first 12 months after the ETF is listed, its fee would be 0.12% for the first USD 5 billion of assets in the fund. That would make it among the cheapest, along with Bitwise Bitcoin ETF which is planning to charge 0.20% and waive off the fee on the first USD 1 billion of assets for 6 months after the listing.
That makes it very attractive for me to start investing in my very first Bitcoin ETF. So I would be monitoring the markets closely next week to invest.
It is certainly exciting times ahead for Bitcoin ETFs and I believe this is just the beginning of more Cryptocurrencies ETFs to be launched.
@MillionaireTiger@TigerStars @Tiger_comments @Tiger_Earnings @CaptainTiger
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