Bitcoin Forum

Aside from maybe the price going up, what advantage do you think will Bitcoin ETF going to give to bitcoin?

http://moneymorning.com/2016/10/21/winklevoss-bitcoin-etf-update-this-week-could-help-sec-approval/ (http://moneymorning.com/2016/10/21/winklevoss-bitcoin-etf-update-this-week-could-help-sec-approval/)

Well the SEC approval this weekend caused the price to rise larger amounts to what it is now at.
So I would imagine the ETF approval will do the same since they essentially tied together.

So that is why the price suddenly jumped to 670+ this weekend. But I am looking for any advantage other than the price going up.

I think the ETF will generate some short term media awareness of Bitcoin. It will also drain in more investment capital from traditional Wallstreet investors. So it's quite safe to assume that Bitcoin's fiat valuation will increase.

But I would not overestimate such effects and consider them rather short-lived. I consider a Bitcoin ETF only as a transitory solution for mainstream investors to invest in Bitcoin. But as Bitcoin's usability is improving the hurdles to buy the "real thing" are quite low already. That's quite a difference compared to precious metal ETF's that profit from the need of secure physical storage and more tedious liquidation process for these assets. You also have to keep in mind that the Winklevii Bitcoin ETF is not the first exchange listed investment vehicle for Bitcoin. As far as indicative evidence can tell, the existing investment vehicles did not cause significant changes in Bitcoin valuation - the WVii ETF may capitalize on the brother's publicity though.

ya.ya.yo!

It will give bitcoin more credibility and lead to more people using it and trusting it.  cant wait for these to lanch

Again, I think this is another milestone on bitcoin.When it is approve by SEC,I think price will rise to unprecedented high. I hope they can build it more secured as security is very important here. They say they will build a cold storage (offline) to addressed it.

Older, less tech savvy rich people will have an easy way to jump on board without the worries we have.

that's all you need, but I dunno about old and less tech savvy. they're still not gonna be interested in it. however there are a lot of people who would take a closer look if they could buy it through their usual channels.

someone showing some interest now might be turned off by having to use a bunch of totally unfamiliar methods and companies to dip a toe in. an etf clears all that up. and then there are the possible tax advantages too.

on top of that there are investors who can't deal with it outside of conventional markets. this brings them in too.

remember folks an ETF is not a way to buy actual bitcoins.
its just "shares" in a company that disclose how my bitcoins the company is holding. and people just 'gamble' (market speculate) on the value of the company.

which is then bait and switched to presume as a "bitcoin price". although an ETF has no actual or direct impact on exchanges or gateways to buy actual bitcoins

A Bitcoin ETF could bring more credibility to Bitcoin as it is a registered product which can be traded by big institutionl investors.
It will mostly be used for speculation by people and funds with big pockets. You will not be able to buy real bitcoins with it.
For that you will have to go the traditional way over an exchange.

I agree with your assessment but I disagree that just because the hurdles of entry to buy Bitcoin is low then the big players of Wall Street will all automatically go for the "real thing". They might not be willing nor do they care. If they do decide to go for the real thing, we do not really have a legal exchange large enough to accommodate the amount of what they might consider to use on their average investments. Of course these big players would want to get in without making the price jump very high. They want to get in is quietly as possible.


I believe the Winklevii ETF could do a better performance because as you said, they already have the name. So that really markets itself already. But also there is a more important reason. The timing. GBP and the Yuan are going down and there are speculations that some are converting to Bitcoin as a form of protection. The USD could be next so I would assume they too would turn to Bitcoin and all the Bitcoin based derivative investments. The Winklevii will be there waving their hands to say hello.

 

Looks like one more Bitcoin transformation into being EXACTLY like wall st.

bitcoin ETF is not bitcoin.
its a small amount of bitcoin held in a trust and then that trust is treated like a company where it sells shares..

thos shares initially will correlate to the bitcoin price but because they are on separate markets the bitcoin price and ETF price will separate.

this is because the ETF funds are locked in to the 'trust' and cannot be arbitraged to affect the real bitcoin price.

at very best if the ETF excels compared to the bitcoin price. the ETF will have spare profits to add more 'baskets' of bitcoins to its ETF and sell shares. the issue is the selling of more shares dilutes the ETF price. due to extra supply. so you wont see the ETF do much to the real bitcoin economy. but the real economy can affect the ETF

I think that a bitcoin ETF will open up the bitcoin market to people who will never have invested in bitcoin and in doing that it will drive adoption and the price to new highs.

There are also current BTC owners who have regular jobs at companies, and therefore have retirement accounts. These people would rather buy a BTC ETF instead of S&P. I wouldn't overlook this crowd.

This is expected and should not come as a surprise. Someone at Wall Street would sooner or later have to recognize Bitcoin as an asset that they could make money from. What I like about it is all the haters of Bitcoin will have no choice but to accept that it will be a part of society as the legitimization of the currency is shown thru the acceptance of the said ETF by more people at Wall Street. Plus points for a cryptocurrency used in the dark market and by criminals.

There is potentially a whole group of investors that would be willing to invest in Bitcoin if it is accessible to them through an ETF that otherwise don't want to mess with bitcoin addresses and wallets. It is a way to get a new community actively involved in Bitcoin and widen it's footprint.

Gives it a bit more exposure, gets people less worried about it and can make them feel safer by letting them get some money into the asset without having to be directly involved with the currency, etc.

I'm probably more worried that people are going to get antsy or it's going to be beset by bad news with the Bitcoin market, but you never know. It might turn out decently.

Another positive from this is that it gives another way for investors to diversify. Bitcoin can be seen as another type of investment in the same way that they spread their funds in gold, stocks, bonds, etc. I see lots of positives to having an ETF.

Might be kind of neat to have an ETF moving some money back and forth, but I don't know whether or not there is going to be anyone who is seriously interested in something like this. While a Bitcoin ETF can make some people a lot of money, I'm curious to see what their algorithms are and whether or not they would consider selling at 50/50 peaks, or if they just hold and sell at a point, or before a trough.

I want to see more of what they can have. Neat idea, has to be implemented more.

Is this thing finally going to happen?
They have been talking about this for the past year and nothing has come of it.
Could this be it for it to finally getting approval? ;D

my gut feeling is that it's gonna be a no. there are still too many variables and unknowns for the sec to be absolutely certain that investors will be ok. on top of the security of the actual bitcoin in the fund, they can't account for forks, 51% attacks, political wrangling and lord knows what else. i'm happy to be surprised though.

I think it will give more benefits to users.
Im excited for the launch, excited for the outcome.
Ill wait the bitcoin etf, seems others are waiting for
this to happen.

Always keep the exchange rate in Bitcoin, this coin is already a sweet investment itself.

To be exact there are many benefits in ETF investing, but having it in Bitcoin exclusively as one so early is insanely risky... Hover over the details and be sure this is something that can be afforded.

Even if the value goes down stress test the analysis until it seeps profit before pulling out (typically 7.5-15% in losses.) Saying the potential of Bitcoin is high the standard may increase quickly so jump into the details to ensure these companies will last.

Im not very clear about how ETF works, but the sound of it seems like it is using bitcoins in a stocks exchange scheme. I dont know if I am correct but I am not really interested on the ETF. But what I want to hear is that ETF can bring another price increase to bitcoin. THough it is unsure since their stockholders are buying shares and not bitcoin itself, bu I do hope somehow that the more investors they have the more they will purchase huge volume of bitcoin that will launch another skyrocket increase in bitcoins price trend.

There really is no advantage for a BTC ETF. I would choose to hold the real thing and store it in cold storage. With an ETF the advantage of the ability to use your BTC to trade is gone. It brings nothing even if you intend only have it as an investment. Having the real thing is better.

I think it has all the advantage of being hit and will be sold a lot by the planners and advisors, people have been clamoring for a new product to add to their portfolio and I feel this will be a game changer for everyone. Plus prices are determined every day that's nice, insurance part also seems good. Plus etf always outperforms, so I I would like to put 10-15% of my corpus in it.

To trade bitcoin you must buy it and you should not buy mutual funds of bitcoin. I guess now you get the differences between these two. Bitcoin ETF also will be traded but only with some specialised exchange and cannot be moved exchange to exchange like what right now you're doing with your actual bitcoins.

ETF is an exchange specific stocks/shares/funds as per my understanding and with the respect to my country's standards.

Have you guys heard of Iconomi? It's a recent project based on the current idea of ETFs, but with certain popular altcoins like Litecoin, Bitcoin, Doge and Ether. They also are working on a system for people to host their own investment funds.

I believe that currently bitcoin is becoming more and more accepted in mainstream investing areas as well as by the general public and even bankers, so with the EF area I see no different. Everyone will want a slice of the bitcoin cake sooner or later.