Long term investors do not need Bitcoin ETF

[Inior]

Yes you heard me right, and I’ll give factual reasons for that.
For those new to the crypto space who may not understand what a bitcoin ETF is, well ETF means Exchange traded fund usually listed in the stock market so investors can have easy access to owning a fraction of the worth of bitcoin an institution has, without necessarily owning the real bitcoin. Eg owning a share of Tesla in the stock market without owning a real Tesla car.

Well before I dive into reasons why ETF might not be a good choice for a long term investment I would like to point out the advantages of ETFs.

1. With ETF you don’t have to create a wallet or try to source for a good location to store your seed phrase
2. It gives you easy access to ownership and attracts more investors
3. Regulated by SEC therefore it offers protection against scams

Disadvantages

1. Not your key not your coin, you don’t have control over the bitcoin
2. ETF owners are obligated to pay 4 different type of fees, of which some are annually
3. Spread issues, most brokerage might have bigger spreads
4. Trading time restraint: since it’s listed in the stock market you are only allowed to trade 5 days in a week
5. You cannot send the bitcoin like normal bitcoin in a wallet
6. Regulation has diminished the pseudonymous nature of bitcoin

From the list of advantages and disadvantages, it’s obvious the disadvantages are more than the advantages because we are looking at this from the reason behind the creation of bitcoin rather than just a singular feature(store of value). Self custody and pseudonymous are the most important features of bitcoin otherwise bitcoin would be like every other asset or currency.

[Y3shot]

Bitcoin itself encourages people to have control over their money, and it is good for people to own their keys and manage them by themselves. But since Bitcoin ETFs have come to stay, people will make their choice on how they want to invest. No matter how bad Bitcoin ETFs are, people will still prefer to invest through ETFs.

The existence of ETFs indicates the growth of Bitcoin and how it has become an institution, but with experience and time, people will choose for themselves which is the best way to invest. Just like the exchanges, it is very risky for people to leave their holdings in them, but because people take the risk, it doesn't mean they are not supposed to have anything to do with exchanges. All these things exist because of Bitcoin, but people have to make their decisions to follow the right path.

[BIT-BENDER]

Personally Bitcoin ETF is for those who wants the benefit of Bitcoin but don't want to really get involved or have a serious involvement with Bitcoin, this is how I see investors on Bitcoin ETF.
For me it's not about short term or long term it is about the investor but if you are aware for the benefits and disadvantages if Bitcoin ETF and still choose it, I presume you have your own special reasons for doing so.

[Sim_card]

Those who cannot handle the self custody of their bitcoin and love to entrust it with a third party are the ones buying bitcoin ETF shares. However, bitcoin was created for self custody but because of profit majority of new bitcoin adopters have neglected the real important of self custody and entrusted their bitcoin to a third party. For me, there's nothing wrong to have 10% of your bitcoin investment on bitcoin ETF shares and 90% in your self custody.

[CryptopreneurBrainboss]

From the list of advantages and disadvantages, it’s obvious the disadvantages are more than the advantages because we are looking at this from the reason behind the creation of bitcoin rather than just a singular feature(store of value). Self custody and pseudonymous are the most important features of bitcoin otherwise bitcoin would be like every other asset or currency.

The companies investing into Bitcoin through ETF don't care about privacy or any other features that comes with Bitcoin but all they're concerned about is the potential profits and they want to also protect their investment that's why they go through this other markets that aren't spot market buying or comes with self custody.

As an Individual trying to make profits from investing into Bitcoin, hodling is your best option and not trying to invest through any other means but for those companies, they're trying to protect their investment by going through methods they're already used to and that's why all this other investment methods are being introduced into the market.

We don't necessary have to follow them and we don't even have the resources to do so, so lets not compared how we should be investing to them but any ways, nothing beats  self custody irrespective of how profitable other forms of investing are becoming or promising still hodling is better.

[Coyster]

Institutional investors would fancy bitcoin etf's to hodling and managing their own keys, it gives them a way to gain exposure to bitcoin through their traditional brokerage account. It is obvious that we have a culture of being our own bank in the bitcoin industry, but some of these investors that buy through etf's are already used to the traditional investment system, so i am not going to hold it against them.

That said, so many people still hodl their bitcoins in centralized exchanges, while advising others not to use bitcoin etf's. IMO, it is better to gain exposure to bitcoin through etf's, than to buy bitcoin and hold it in a CEX.

[promise444c5]

Well well well..

In as much I would want to suggest Bitcoin ETF to anyone.. I think people are free to make decisions for their money.

If they truly can’t deal with  handling their keys themselves , they can go for something else.  

ETF over the real Bitcoin is a different investment entirely and it obvious to them that they don’t have the real Bitcoin, all they get is exposure. So anyone buying EatF knows what’s they’re doing, and also knows the right thing to do if they want the real BTC.

[Accardo]

Most investors go through ETF because they'll have a centralized body to run to if something goes wrong. The investor don't take all the responsibilities of owning assets in an unregulated market, and to most of the people in it, ETF is their best choice of ride into a highly volatile market.

[FirmWars]

Your idea won't change the decision of someone who already made of their mind to invest on Bitcoin through EFT because the person may have their convincing reason why they have chosen Bitcoin EFT over investing in real Bitcoin. Since I have been reading topics related to EFT, what usually stood out in people's opinions is that some people are investing in Bitcoin ETF because they just want to invest in Bitcoin's price without having to buy, store, and manage Bitcoin themselves because of security risks.

I don't think our country people are interested in ETFs, everyone here wants bitcoin straight 🤷‍♀️. I learnt that in US, some investors can hold certain Bitcoin ETF in their retirement account and for them, that's also the reason why they like ETF, they don't want direct exposure to bitcoin.

[CryptoHeadlineNews]

Most investors go through ETF because they'll have a centralized body to run to if something goes wrong. The investor don't take all the responsibilities of owning assets in an unregulated market, and to most of the people in it, ETF is their best choice of ride into a highly volatile market.

Though the majority of people who invest in Bitcoin ETF, are those who just wants to have a feel about the Bitcoin experience, but do not want to take the responsibility of protecting the private keys of a Bitcoin wallet, and likewise using a crypto exchange for sending it. And secondly, the last statement you just made about Bitcoin ETF as an unregulated market is a wrong perception. Because its regulation varies from one country to another, as there are some countries where the Bitcon ETF is highly regulated, which is what could give some investors the courage to investing huge sum of money.

[Charles-Tim]

It is worth knowing that some people are holding bitcoin ETFs. Although, I prefer to go for bitcoin and not ETFs.

5. You cannot send the bitcoin like normal bitcoin in a wallet

You meant that you can not send bitcoin ETF and not that you can not send bitcoin.

Bitcoin ETFs are very different from bitcoin which you also know. They are not bitcoin, but they are ETFs which people buy as shares.

[Shadiq]

The big difference between buying Bitcoin ETFs and buying Bitcoin is the risk. Those who have relatively low self-custody risk control or do not want to go through this hassle, mainly lean towards ETFs. There may be other reasons, but this is the reason I see from my perspective.

Self-custody is very important for buying Bitcoin, if you ever lose your keys, you will never get those Bitcoins back and the responsibility of the Bitcoin funds will be entirely on you. But in the case of ETFs, you do not have to take that responsibility, rather a third party will take responsibility for your ETF. Since I am used to self-custody, I never even considered buying an ETF.

[Josefjix]

I haven't seen any Nigerian owning Bitcoin ETF, always the foreigners who are whales owes this, and never in small amount
 It's not talked about much in the Nigerian as well as the African crypto market like that, apart from centralized exchange present where we purchase self custody Bitcoin, where else do we go?

And who knows where to buy Bitcoin ETF in Africa as a whole, anyone knows.

I think Bitcoin ETF is foreigners things, African and Nigerian hardly do it.

[Cryptomultiplier]

It is worth knowing that some people are holding bitcoin ETFs. Although, I prefer to go for bitcoin and not ETFs.

5. You cannot send the bitcoin like normal bitcoin in a wallet

You meant that you can not send bitcoin ETF and not that you can not send bitcoin.

Bitcoin ETFs are very different from bitcoin which you also know. They are not bitcoin, but they are ETFs which people buy as shares.

I like to hammer on the highlighted part because a clear difference for one is how Bitcoin may be owned by anyone and everyone for whatever reasons they choose but Bitcoin ETF serve a very specific niche  of crowd.

Bitcoin prioritize soverignty and a long standing integrity of the network while Bitcoin ETF is for deep pockets, retirement accounts, corporate treasuries and traditional institutional allocators.

[Johnlomape]

I no really know where you see Nigerians they subscribe to Bitcoin ETF ooh na why I dey surprise about this ur topic.
Bitcoin ETF no really dey this country and e no even concern us sef. Na woo dey dey countries wey they allow their people to subscribe to Bitcoin ETF go wan to run am as they no way dey take risk at all.

To me, I believe say na person wey dey lazy and wey no wan take that risk go wan subscribe for Bitcoin ETF because I no see any reason for that. E go pay me to carry my money to buy Bitcoin so I go fit keep am for my wallet than for me to dey wait for ETF company wey go dey use my money to trade with tiny interests wey dey go dey give me.

[Justbillywitt]

So far we haven’t heard any bad news about those that invested in bitcoin through the ETF. The ETF are just for those that don’t want to handle bitcoin on their own. The entities can hold their investors bitcoin for as long as the investor wants, so I don’t see the reason why those investors can’t hold their bitcoin there for long. Provided the company is not running away with their funds. I prefer self custody, but if someone is more prone to losing their bitcoin if they store it on their own, it’s cause no harm keeping it with entity those companies that can store it on their behalf.

[Moreno233]

I see investing through the ETFs as simply a way of diversifying, just like buying the ongoing Dangote stocks. I don't see it as spmething completely bad though but it is something I can only do when I have accumulated a good quantity of Bitcoin and store safely in my wallet. I understand the aspect of risk but that should not deter anyone who wants to diversify into ETFs because the essence of the ETFs is primarily as a protection against risk and volatility of onchain Bitcoin. Not saying that ETFs are completely safe investments but the risk in them is not that high that it should discourage anyone. We should not also forget the need to invest what can be sacrificed.

[Charles-Tim]

I haven't seen any Nigerian owning Bitcoin ETF, always the foreigners who are whales owes this, and never in small amount
 It's not talked about much in the Nigerian as well as the African crypto market like that, apart from centralized exchange present where we purchase self custody Bitcoin, where else do we go?

And who knows where to buy Bitcoin ETF in Africa as a whole, anyone knows.

I think Bitcoin ETF is foreigners things, African and Nigerian hardly do it.

Example is IBIT owned by BlackRock. I checked Kuda and I saw it there. I also check Bamboo and saw it there. So after seeing in in two places already, I decided not to check other platforms.

Nigerians have access to buying United States stocks through many platforms, so you will see other United States ETFs there also.

[promise444c5]

I haven't seen any Nigerian owning Bitcoin ETF, always the foreigners who are whales owes this, and never in small amount

I don’t know much about other brokers but I know Bamboo very well which is majorly for Nigerians   even though  it a sub.. uses Lambeth Capital LTD for the Nigerian securities and also partner mwith [/i]DriveWealth LLC[/i] for the US securities .

On the app “NG stocks” and “US stocks” category separately. You can choose US stocks and you will be able to find Bitcoin ETFs of your choice.

I’ve used it in the past, not for ETF anyway.. and  No, you don’t really need some big amount to invest, your profit and loss will be determined according to your investment portfolio.

[Callido]

Those who are scared to control their own privacy rush into buying Bitcoin ETF. Buying a Bitcoin ETF is not a bad idea, people who do are still Bitcoin investors even if they do not directly control their assets, the shares they receive are equivalent to the worth of Bitcoin held by the sponsors.

The same way some people ignorantly store Bitcoin in an exchange instead of going full custody of their asset. The ETFs are centralized, what if something happens? We do not know what will happen, some investors might be scared after witnessing recent hacks happening this year, thinking buying ETF shares is the best way to avoid the hacks.