How To Buy Bitcoin ETF, a Simple way!

What is Bitcoin ETF?

An Exchange-Traded Fund or ETF is a fund that is exchanged on a stock market. They operate as investment funds, which provide everyone access to an index or property providing the same profit to investors as the primary markets do. Consequently, ETF stocks are one of the most widespread among market users because of the ability to invest in businesses without being charged by the fund manager. Before purchasing an ETF, it is required to investigate what is involved in the fund.

By 2018, it has been reported that The U.S Securities and Exchange Commission (SEC) is contemplating the concept of forming a Bitcoin-ETF. A Bitcoin-ETF would be an investment tool using Bitcoin as the principal asset. The basic purpose of it would be to facilitate the investing means into cryptocurrency and make it more charming for the community.

ETFs look tailored for investing in cryptocurrency and its newcomer investors. Cryptocurrency market is highly volatile and unpredictable, and the obstacles to entry for fresh investors can be considerably tricky. If an investor doesn’t want to gamble putting his or her wealth into an uncontrollable and probably illegal exchange, then he/she has to go through the difficulty of creating a wallet account and storing it safely.

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A Bitcoin-based ETF could wipe out all of these concerns, giving cryptocurrency fresh investors good exposure to Bitcoin in a standard and organized condition. Bitcoin ETFs have experienced various regulatory complications. However, we aim to have a glance at Bitcoin ETF function, the demand for an ETF, and what are the regulatory hurdles.

Bitcoin ETF function

The fundamental distinction between holding Bitcoin itself and keeping a Bitcoin ETF is that there is no need to worry about the safety or storage of Bitcoins. The ETF combines an extra layer of security and assurance because the investor’s assets are joined to the declared price and not to the cryptocurrency itself. So it provides a much safer and easier opportunity for investing in cryptocurrency.

Therefore, the controversial issue for Bitcoin ETFs is that they provide a more reliable, more stable system for Bitcoin investors to enjoy the Bitcoin market without joining the fluctuated, chaotic environment of Bitcoin. ETFs are a sustained financial mechanism for risk management and facilitating the investment process. Regulatory rules would make Bitcoin market a pleasing alternative to permitting investors to enter the Bitcoin market.

Bitcoin ETF regulatory issues

The key player in the cat-and-mouse game of Bitcoin ETF is the SEC. So-called Howey Test should examine all of ETFs. Summarily, the Howey Test is a measure for evaluating whether a proposed financial tool is secure which begins from a 1946 Supreme Court case.

Throughout 2018, the SEC has frequently postponed several ETF applications. In Aug. 22 ruling, the commission rejected two Bitcoin ETFs from launching on the New York Stock Exchange. The exchange, in cooperation with the ProShares, had initially registered their application in December 2017.

The commission stated that they were not considering the legality of Bitcoin. Its law was rigidly tied to the launching of Bitcoin-based ETFs. The ETF commission should not list Bitcoin as a security or a non-security product, which is a side issue that the market has been seeking clarification.

Alternatively, the commission concentrated utterly on the threat of cheating and market manipulation within the broader Bitcoin market

“SEC Commissioner Hester Peirce, also known as “crypto mom,” addressed the regulatory conditions for Bitcoin ETFs, stating her disappointment with the current rules that makes investing in cryptocurrency difficult. “

SEC is currently evaluating three possible ETFs, which was listed last week to trace the prices of two cryptocurrencies. An SEC commissioner declared at the Consensus conference that it is a proper time for a Bitcoin ETF, as the commission is expected to decide on one of them last week.

SEC Commissioner Hester Peirce, also known as “crypto mom,” addressed the regulatory conditions for Bitcoin ETFs, stating her disappointment with the current rules that makes investing in cryptocurrency difficult. She declared that the SEC has to do more to provide a regulatory structure for digital currencies.

Whenever a suggested law change is registered with the SEC, it will be published in the Federal Register, which is a critical start date for the SEC’s ETF approval timeline.

For the three proposed ETFs, the SEC is due to decide to accept, reject, or postpone its decision. Chervinsky expects that if the commission votes to additional delay its decision on the Vaneck Solidx ETF, then the new decision date will be Aug. 19. He also emphasized that the commission could ask the sponsors to withdraw and refile.

According to the latest reports, SEC again postponed ETF approval on Bitcoin exchange-traded fund (ETF) on May, 21.

In a new document published by the SEC, the regulator said it would hold off on deciding on the Bitwise ETF proposal filed with NYSE Arca which was first filed in January of this year.

The SEC postponed a decision on both the Bitwise and VanEck/SolidX proposals at the end of March. The regulator has yet to accept any Bitcoin ETFs, though both experts in the space and officials with the agency seem to believe that it’s only a matter of time.

Crypto Crescent Asset Management, a digital asset and fund manager, has also proposed a crypto ETF, which would give customers, exposure to both Bitcoin and ether. The firm, which is partnering with NYSE Arca, has not yet formally filed its proposal, however.

There will be a public comment period for three weeks after the latest document regarding the Bitwise ETF is published in the Federal Register, plus an additional two weeks for responses.

Bitcoin’s mass adoption and Wall Street approval is increasing, and some business analysts predict it’s only a matter of time before Bitcoin ETFs to be added in the Bitcoin toolkit which makes investing in cryptocurrency market more attractive for traditional investors.

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“Bitcoin’s mass adoption and Wall Street approval is increasing.”