The recent approval of spot Bitcoin exchange-traded funds (ETFs) in the US has had a positive effect on the value of Bitcoin.
I disagree.
In a world where a lot of things happen every day, approving ETF that happened last month in January is considered
ancient news not "recent" anymore.
This means any effect it could have had on price, has already happened 2 months ago (February is already over too!).
The launch of spot Bitcoin ETFs provides an easier way for mainstream investors to gain exposure to Bitcoin.
I disagree with this too.
Because unlike other stuff that have an ETF, it is not hard at all to buy, trade and own bitcoin. Take gold for example. It is difficult to purchase large amounts of gold (it is physical) it is extremely difficult to trade it (physically) and store it safely. This is not true about bitcoin. All you need is a digital wallet (or even a hardware wallet).
So ETF is NOT an "easier way" to gain exposure to Bitcoin, it is a terrible way that can only be useful for those who don't want to leave the centralized world and instead of buying bitcoin they want to buy a garbage that is promised to be linked to bitcoin!
huh???
I'm sorry pooya but you're just plain wrong. First off I think the person was talking about the ETFs themselves, not just the event of approving them. And of course with hundreds of millions of dollars flowing into Bitcoin through the ETFs five days a week, it is have a large positive impact on the value of Bitcoin.
And yes of course the ETFs are an easier way for lots and lots of people to get exposure to Bitcoin. There are many millions of people who ONLY invest through traditional finance firms. And just in general there is a ENORMOUS amount of money in the traditional finance/investment system (aka Wall St) that is only allowed to invest in financial products in that system. So while for individuals they of course always could have gone to a crypto exchange to buy Bitcoin, many didn't want to because they only trust investing through the financial firms they are used to, and now they can buy Bitcoin ETFs in the same way they invest the rest of their money. And then there is the second part I mentioned, the money that isn't allowed to leave the TradFi system. Retirement accounts for example can only buy things in the TradFi system. Many funds are only allowed to buy things in the TradFi system, or at least would have to change their rules to buy something outside the system, like Bitcoin. So for probably the majority of peoples', companies', and investment funds' investable money in America, Bitcoin ETFs are either the easier or more comfortable choice, or the ONLY choice to get exposure to Bitcoin.
I mean I know you understand that because you even said it is "useful for those who don't want to leave the centralized world" aka the TradFi world. And most of the investable money in the US already exists in the TradFi world. ETFs open up Bitcoin to that money. Don't let the fact that you are a bitcoiner blind you to the fact that most investable money is in the Wall St system and isn't going to leave that system. Bitcoin ETFs are a bridge for TradFi to get into Wall St. It might be a "terrible way" for you personally, or for me personally, because we already buy and own bitcoin directly so we have no need of the ETFs. But for most money in the US the ETFs are the best and sometimes only way they will gain exposure to Bitcoin.
And I, for one, am not going to complain that ETFs opens up an enormous new market for Bitcoin investing that'll bring in tens of billions, and probably eventually hundred of billions of dollars into Bitcoin, sucking up supply and making the bitcoin we own far more valuable, which will of course lead to even more people learning about Bitcoin and spread its adoption because the price rising is always the thing that gets people starting to learn about Bitcoin, cuz everyone wants to make money. "Number Go Up" is the enticement to get people to learn about the fundamental values (the non-price value) of Bitcoin. ETFs are a huge benefit to Bitcoin's "Number Go Up".
