the ABC of Spot Bitcoin ETF, what’s the big deal? Dorea Team, January 11, 2024January 12, 2024 These days, crypto fans are happy about what happened. The US SEC (US Securities and Exchange Commission) finally approved bitcoin to trade legally as an ETF. But what is ETF, and why is it so important to the world? First, let’s talk about the ETF itself. What is ETF? ETF is the abbreviation for exchange-traded fund (justEtf), which means some portfolio assets like gold and many other assets can be traded in safe circumstances. Imagine we have a room that some corporations list on there, and some dudes (fund managers) get your money and put it into specific shares based on a specific strategy. So, ETFs are safer investments and are also regulated by the government. You could be 99% sure that investing in those corpses is not fraud. ETFs are also more transparent since their holdings are generally published online daily. What is the Spot Bitcoin ETF? A Bitcoin ETF is like betting on multiple assets without having to buy any themselves. You have no worries about signing up for a crypto exchange, having a wallet address, hacking your wallet address, etc.; you buy assets that are tied to bitcoin value in the market. but the SEC warned about bitcoin risks in the market. You must be careful and decide wisely. The crypto market still has many fluctuations and risks. But why is the Spot Bitcoin ETF so important? Despite regulating bitcoin for the first time in the US, ETF has many advantages that could be considered: Easy: you can buy and sell bitcoin easily on the stock market Safe: It’s a regulated and safe room to trade assets. Affordable: you can buy any asset for $1. Easy Understanding: The stock market is so much more understandable than the crypto exchange dashboard. But also, there are many pros to ETF, like the fact that you don’t manage your assets directly. Some Useful Statistics Analysts at Bernstein predicted that in less than five years, 10% of the global supply of the world’s largest cryptocurrency, or roughly $300 billion, will be managed by ETFs. (CNBC) So investing in ETF seems like a pretty good idea because ETF brings more people and more institutions into the crypto market. Analysts at Bernstein estimated that bitcoin ETF flows will build up gradually to cross $10 billion in 2024 in its race to $80 billion by the end of next year. (NASDAQ) All markets are on green signal Cryptocurrency-related stocks climbed, with bitcoin miners such as Riot Platforms RIOT.O and Marathon Digital MARA.O rising 4.2% and 5%, respectively, in premarket trading. Bitcoin investor Microstrategy MSTR.O gained 2.5% and crypto exchange Coinbase COIN.O gained 4.4%, while the ProShares Bitcoin Strategy ETF BITO.N, which tracks bitcoin futures, added just 0.4%. Shares of retail trader-focused brokerage Robinhood HOOD.O. rose 3%. (NASDAQ) diversifying crypto revenue It seems the spot bitcoin ETF will lead to diversifying crypto revenue, especially since it puts more pressure on Coinbase to lower transaction fees and increase crypto usage in more areas. Does it even matter to my business? If you have a business, you should definitely consider the growth of bitcoin. People care, customers care, and why should you not care as a shop owner, an entrepreneur, or a manager? On the Crypto Dorea platform, we provide everything you need to set up an easy Crypto cashback program for your most loyal customers. You can customize it in any way you want for each product or service category. Visit Crypto Dorea and get the latest update on the product. Articles bitcoin etfcryptoetfspot bitcoin etfstock market