Will this be really a good news for the crypto industry or not? Because for me this might be a double-edged sword where the Bitcoin ETF is just confirming that we have a lot of demand and the other part is this Bitcoin ETF entered in the market on a bullish season where everything is up right now. The risk for this investors is more compared to the people who have entered it when Bitcoin was just below 20,000$ meaning the 590$ million assets under management they are handling right now is without any margin of safety and they are relying on Bitcoin going up above the current market value for their investors to have a profit. If everything will fail this could be a multi-million dollar disaster waiting to happen for these investors.
An ETF is very good. Bitcoin investment trusts similar to Barry Silbert’s Grayscale does not allow investors to redeem the asset behind the derivative. This traps your money in that market because you can only get your money back by selling the asset. It might be okay if the market is liquid.
In an ETF, you can redeem the bitcoins this represents.