A brief explanation of bitcoin ETF

[Baghdad]

I'm seeing numerous news channels uploading news on bitcoin ETF since the recent increase in price of bitcoin. What is it about? Searched for existing definitions and answers here but wasn't satisfied with the 2011 thread I read. Why is it not approved by the government officials? Thanks in advance.

[cryptoaddictchie]

Why is it not approved by the government officials? Thanks in advance.

Its not yet approved or have decision yet. Of course there are relative review with the company application of the etf and it will take time especially if its related to cryptocurrency since Government is really reviewing all necessary applications and provisions. Dont know why they are strict but eversince its has been like this anyway.

[Charles-Tim]

You can read these about it to understand:

https://www.coindesk.com/business/2023/10/20/coinbases-grewal-is-quite-hopeful-that-bitcoin-spot-etfs-will-be-approved/?outputType=amp
https://www.forbes.com/sites/digital-assets/2023/09/14/what-is-a-spot-bitcoin-etf/amp/
https://bitcoinmagazine.com/guides/spot-bitcoin-etf

Spot bitcoin ETF will have the same price as bitcoin as spot bitcoin ETF will let investors to have direct exposure to bitcoin, and not the same as future bitcoin ETF that has derivative price in which is an asset related to bitcoin but not bitcoin.

With spot bitcoin ETF, asset managers will need to buy bitcoin and store it for their clients, this will result to increase in the price of bitcoin if approved.

[Doan9269]

I'm seeing numerous news channels uploading news on bitcoin ETF since the recent increase in price of bitcoin. What is it about? Searched for existing definitions and answers here but wasn't satisfied with the 2011 thread I read. Why is it not approved by the government officials? Thanks in advance.

Those that are in charge of ETF are the government officials, Securities and Exchange Commission, they made approval or rejection over the use of bitcoin as a spot ETF, which means that organizations under their authorities need their access to be approved for using bitcoin price on their stocks and bonds market values in which what determines that will be the level of how the bitcoin market is, SEC didn't grant approval because they feels that they don't meet the requirements for such or having other reasons against the application on bitcoin spot ETF.

[Stalker22]

The SEC has been approving some ETFs that hold BTC and ETH futures.  But up until now, they have put the brakes on any ETFs wanting to directly buy-in to Bitcoin itself.  Their concern seems to be the alleged shady side of crypto market.  Although some analysts think it is just a matter of time before the SEC gives in and people from Bloomberg Intelligence have said it looks inevitable that the SEC will end up approving a Bitcoin spot ETF.  They figure it will probably happen in a batch, but nobody knows for sure when that day will come.

[Yaunfitda]

I'm seeing numerous news channels uploading news on bitcoin ETF since the recent increase in price of bitcoin. What is it about? Searched for existing definitions and answers here but wasn't satisfied with the 2011 thread I read. Why is it not approved by the government officials? Thanks in advance.

Others have provided a lot of links for you to study what Bitcoin ETF means, but in any case you have questions, here is a good thread, Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!, or Everything you wanted to know about a future Based ETF and were afraid to ask! by @fillippone.

And maybe this link as well: https://beincrypto.com/full-list-spot-bitcoin-etf-applications-deadlines/

[BIT-BENDER]

The Bitcoin is a hot topic and can play an important role in the bull run but still it can create FOMO and FUD if majority of people actually don't understand it, I have been doing my own research on the Bitcoin ETF and still I am fascinated about it but we all have different opinions on it.

https://bitcointalk.org/index.php?topic=5374644.msg58593663#msg58593663

This post helped in me understanding more I hope it also helps you out mate.

[Hamza2424]

I'm seeing numerous news channels uploading news on bitcoin ETF since the recent increase in price of bitcoin. What is it about? Searched for existing definitions and answers here but wasn't satisfied with the 2011 thread I read. Why is it not approved by the government officials? Thanks in advance.

Hmm, OP from the title I was assuming the real-time brief history or kind of article-like thread but seems like here Op's asking for guidance from the seniors. In way in this way as well this thread can help a lot in learning about ETF and its History whenever a Newbie goes through it.

So here in the current Bull-Run, the most supportive narrative for Bitcoin is the ETFs, You can imagine their over_hyped performance by the recent market momentum a ticker listing completely reverses the entire market sentiments a fake ETF approval news, pulling the market from a tight range to a massive Rullish Rally.

On the Question of why they're not approved because currently, SEC doesn't want them, other countries I'm not sure how they are building their crypto policies, currently in recent times Australia has been doing some how good, for the ETF approval in the USA it's expected to be soon in near Q1 of 2024. They're currently delaying the approval request on baseless excuses, a Future ETF gets approval at the same time a spot ETF is considered suspicious due to the volatility of the market, and blah blah. Grayscale's case proved to a massive support in getting ETFs approval sooner or alter. This rally will bring a lot of wonders so expect the unexpected.