Bitcoin ETF Future

[GreatArkansas]

I am curious since most Bitcoin ETFs are already approved and I am new to these ETFs things.

Is there any possibility that in the future these Bitcoin ETFs will be terminated or halted?
If yes, what could be the reasons or possibilities it will?

[OcTradism]

I am curious since most Bitcoin ETFs are already approved and I am new to these ETFs things.

Is there any possibility that in the future these Bitcoin ETFs will be terminated or halted?
If yes, what could be the reasons or possibilities it will?

Bitcoin Spot ETFs are kind of business product and there are many companies with their Bitcoin Spot ETFs compete with each other to have customers. There will be winners and there will be losers.

I remember some famous people said that in future, there will be some Bitcoin Spot ETFs to survive after going through selection process of market and customers. I believe this statement is true because it is true not only for Bitcoin Spot ETFs but for all business.

[BitcoinOnly]

It would be a monument back flip from the SEC to terminate all BTC ETFs. I think the reason they took so long to approve them in the first place was because they had to do the due diligence and make sure that they were making the right decision in classifying BTC as a commodity.

I'd imagine it would be possible to terminate bad actors though if an ETF or group of them had been breaching the law.

[Apocollapse]

Read this article https://www.investopedia.com/articles/exchangetradedfunds/09/etf-out-of-business.asp

There's no difference with stock in terms of liquidation, the investors will get refund based on the last price of the ETFs, but this is not easy and most of them need to wait so long to get their money.

So yeah there's a chance it will be terminated or halted, the possibility is when the ETFs no longer profitable.

[Kakmakr]

As long as investors are making money from ETFs and also the platform where it is hosted on, then it will continue.

You get certain companies that will delist their company from the stock market, because they want to trade privately, so investment options change over time.

So, if ETFs gets less support from the investors, trading platforms might remove it and then replace it with something that gets more income for them.

[adaseb]

Etfs get terminated for many reason however most of them are due to lack of demand. There are way too many of these Bitcoin etfs so I predict in a year or two the 2-3 with the least amount of AUM will probably just close down.

Don’t think blackrocks or fidelity will however close down anytime soon since it has a large AUM and will be around for years. Remeber that Inverse Kramer ETF that launched a few years back, it closed down last week due to lack of demand. It just happens with etfs.

[GreatArkansas]

Thanks for all your answers, I wish I had enough merits to give you all.

Now, there's already some light.
I can consider that these institutions are our centralized exchanges then all listed cryptocurrencies to their exchanges are equivalent to ETFs.
Where we saw some exchanges "delisting" pairs from their exchanges, then I can relate this to these institutions where they also delist/halt/terminate ETF as their "business product".

[Tanzila420]

Actually i want to know what means the full form ETF?

[pakhitheboss]

After all, it is an exchange traded fund that is a financial product, and if there are legal violations like fraud or manipulation related to a particular Bitcoin ETF then its trading can be halted. Which later on can result in the ETF sponsor closing the fund. The other reason that I can think of is that if it does not gain profit or becomes unprofitable then it can be closed. It all depends on how the regulatory and crypto environment does in the future, which as of now is looking good.

[Luzin]

I can consider that these institutions are our centralized exchanges then all listed cryptocurrencies to their exchanges are equivalent to ETFs.
Where we saw some exchanges "delisting" pairs from their exchanges, then I can relate this to these institutions where they also delist/halt/terminate ETF as their "business product".

Of course there are many possibilities. I'm sure there will always be ongoing evaluations and audits in the running of ETFs. It may even be that the principle of ETFs is almost the same as trading exchanges, they can remove if it is not profitable. Since the beginning, there have been some big companies that have proposed spot ETFs such as Grayscale, Bitwise, BlackRock iShares, WisdomTree, ARK 21Shares, and Invesco Galaxy. Although approved, the SEC still warned about the volatility of the crypto market that could be detrimental.  CMIIW

Source: https://www.investopedia.com/spot-bitcoin-etfs

Actually i want to know what means the full form ETF?

To learn more you can visit this site
https://www.etf.com/etf-education-center/etf-basics/what-bitcoin-futures-etf
https://www.theblock.co/learn/272940/what-is-a-spot-bitcoin-etf

[OcTradism]

Etfs get terminated for many reason however most of them are due to lack of demand. There are way too many of these Bitcoin etfs so I predict in a year or two the 2-3 with the least amount of AUM will probably just close down.

It is exactly what's going on with approved Bitcoin Spot ETFs. Two leaders (exclude Grayscale) are BlackRock and Fidelity, and bottom ones have very few demands.

In 2 or 3 more years, bottom ones with little demands will have to self close their Bitcoin Spot ETFs and their customers will switch to top ones like Grayscale, BlackRock, Fidelity, ARK and Invesco.

Don’t think blackrocks or fidelity will however close down anytime soon since it has a large AUM and will be around for years. Remeber that Inverse Kramer ETF that launched a few years back, it closed down last week due to lack of demand. It just happens with etfs.

I expect they will bring more capital to Bitcoin market because they are very big capital management institutions and total capital they are managing in Bitcoin Spot ETFs are very small compare to total assets values in their management portfolios now.

[criptoevangelista]

What could make this happen one day will be if bitcoin is hacked, or loses its fundamentals, or turns into a scam... All of this I think is practically impossible to happen. So we will have to live with ETFs forever.... They have existed for many years in other countries and have always worked very well

[SamReomo]

Yes, there is probability that the exchanges and such instructions can halt and delist the trading of ETFs. Most of the ETFs will still earn profits for the ones who fund and launch those ETFs but if they somehow turn into frauds and somehow can't have much profits from the ETFs then finally those ETFs will be considered as non-successful ETFs and exchanges will halt and delist those.

[OcTradism]

What could make this happen one day will be if bitcoin is hacked, or loses its fundamentals, or turns into a scam... All of this I think is practically impossible to happen. So we will have to live with ETFs forever.... They have existed for many years in other countries and have always worked very well

Bitcoin can not be hacked.
Bitcoin is not a fraud, scam.

People lost money because they used a bad Bitcoin wallet like close source, custody and they don't have private keys. Or they lost their bitcoins because they lost private keys, did not have backup or lost backups.

If anything happens with Bitcoin treasuries of those Bitcoin Spot ETFs, it is not problem from Bitcoin but from those companies.

[Natsuu]

If rules around ETFs or cryptocurrencies change or if there are shady activities in the market, regulators might put a stop to Bitcoin ETFs. Problems with the security of crypto assets like hacks or tech issues could also lead to halts and of course unexpected financial troubles or big shifts in how people feel about investing in Bitcoin might make regulators step in too

[boyptc]

Can be halted or removed? Possible.

But as said, it will be related to its liquidity and interest of the investors. So just as any other financial products that are offered by these firms, as long as there are interested investors to go with it then it won't be gone.

So, the possibility is there but it is unlikely to see it gone at least for now. As we all know about the future, it can't be accurately foretold.

[leonair]

Although Bitcoin and ETFs are allowed, it is a type of trading product.  As you are new to the ETF thing you will have a better idea about it.  ETF and cryptocurrency regulations change depending on market activity and may be closed depending on regulations.

I remember some famous people said that in future, there will be some Bitcoin Spot ETFs to survive after going through selection process of market and customers. I believe this statement is true because it is true not only for Bitcoin Spot ETFs but for all business.

I agree with you it could be.  Famous people have a lot in common with what they think and say.  Famous people talk much more thoughtfully than us, they talk about the market with good ideas that are recharged enough.

[Dimitri94]

If we think of Bitcoin ETF as a commodity of the stock market, then of course there is a long-term position that can be taken. Also, if the approvers (SEC) say that the ETFs are no longer profitable, or if the ETF applicants want to stop managing the ETFs, then I think the approving agency can stop it again. But since they have approved it recently we will definitely have time to observe it for a long time. If it is profitable then it will not stop. But everything will depend on the commission. I can say from my personal opinion that Bitcoin ETF will not bring anything significant to Bitcoin as well as there is no chance to see it as a negative either.

[CODE200]

From what I can understand of these ETFs, they're like stock certificates or something like that so I don't think that with how strong bitcoin is and how it's considered a blue chip in crypto, ETF being discontinued is likely an impossible thing and most likely the people that's going to be invested in this are probably risk takers or bitcoin hodlers too and they might see this as another investment opportunity. I am also learning more about these ETFs so I might be wrong on my comparison with stock certificates so feel free to correct me on that but I do believe about bitcoin ETF not likely to be removed by these companies and SEC has finally approved it which means that they've got some form of interests in their approval of the ETFs so they'll likely help with it not being removed.

[MusaMohamed]

From what I can understand of these ETFs, they're like stock certificates or something like that so I don't think that with how strong bitcoin is and how it's considered a blue chip in crypto, ETF being discontinued is likely an impossible thing and most likely the people that's going to be invested in this are probably risk takers or bitcoin hodlers too and they might see this as another investment opportunity.

There are 11 Bitcoin Spot ETFs approved so far and we can see more Bitcoin Spot ETFs in coming months. But those ETFs operate as business models and they need to spend different resources for operations. They need to spend inputs for operations but must gain profit from operations to keep their business models running well and sustainable.

If a Bitcoin Spot ETF does not attract enough investors, cost of operation will be bigger than income, so their net balance will be negative. You see if they have loss from operations, they will have to close their Bitcoin Spot ETFs. It's fair competition in any business area.