The SEC’s recent announcement of Bitcoin’s new exchange-traded products’ approval has spurred much discussion in the media and beyond, with controversy striking as camps are split between pro, anti, and neutral factions. Needless to say, another scenario couldn’t have been expected: modifications around the Bitcoin and overall crypto law, as well as new Bitcoin-based products, are always stirring the waters, and for good reason.
If so far, you would’ve needed an account on a popular crypto exchange to deposit money and complete USDT/BTC orders, now all the work of getting Bitcoin has suddenly become more straightforward. It’s important to note that more effortless doesn’t mean safer or better. Still, the wisest and best-advised way to go around is with well-rooted centralized crypto exchanges with a long history of helping investors manage their funds and crypto acquisitions. But since some laypersons have slept on the idea of creating such an account and being in charge of their own crypto assets, financial giants like Hashdex, Fidelity, VanEck, Invesco, and BlackRock, among others, have come up with Bitcoin exchange-traded funds (ETFs).
Now, the world is in a state of frenzy. And it’s a safe bet that the entity behind Bitcoin’s development is nodding satisfied at the latest releases that improve accessibility to buy their creation. Or isn’t it?
Bitcoin’s primary intent aligns with ETF’s objectives
If not long ago, many would misleadingly think that acquiring Bitcoin must be done on top of a meaningful raison d’etre; Satoshi Nakamoto’s original intent of creating a store of value that the whims of anyone can’t confiscatecan’t is opposing that widespread misconception increasingly more. Bitcoin is primarily designed to enable those holding significant amounts of out-of-use money to invest the excess in a store of value that can either be cashed in later in life or diversify investment portfolios and bring opportunities for an effortless profit. If we look at Bitcoin’s main underlying objective of empowering investors to be their own bank, then the recently released ETP (exchange-traded product) can only build up its case. It represents the mere and bare way a store of value aimed at being impossible to censor and confiscate functions. In plain English, one can get hold of such a store of value when they seek the protection provided by crypto and later sell the ownership when they’re no longer dependent on that guardianship.
To date, and as far as the world is concerned, Bitcoin ETFs have proven to explicitly strengthen the case proposed by Satoshi Nakamoto and turn their boldest aspirations to life.
But does Bitcoin need an ETF?
As a cryptographic currency that can’t be manipulated or seized by any authority or entity, Bitcoin is already a revolutionizing asset. In the financial space, it’s witnessing its capacity disrupting industries and playing with well-established dynamics between large financial products from banks, government, and more. If Bitcoin was in burning need of an exchange-traded product, however, remains debatable. For some, Bitcoin provided enough exposure as it was.
For others, and certainly Nakamoto included, Bitcoin could allow easier investment exposure to individuals. A spot ETF is an investment tool that empowers average investors to facilitate the accorded exposure to the fluctuations of Bitcoin without having to resort to derivatives contracts that only rely on the price. With direct investment in the underlying asset, investors can accessibly and safely acquire Bitcoin through a vehicle that actually owns real satoshis. The price of intermediary asset management and brokerage commissions still exists but balanced out afterward.
As one can see, if Bitcoin couldn’t have done without an ETF is subjectable. Taking into consideration all the benefits and advantages brought by such an investment vehicle, one can rationally conclude that Bitcoin ETPs are only helping its mainstreamness, stabilizing the asset’s prices, improving liquidity, empowering ordinary investors to capitalize on it, and ultimately realizing Nakamoto’s boldest goals.
And who is bringing Nakamoto’s wildest dreams to life?
Companies realizing Nakamoto’s boldest aspirations now are those who have been filling and readjusting submissions over time to be allowed to launch and offer interested investors new financial vehicles facilitating their acquisitions. Eleven years ago, the first application for a Bitcoin ETF would be pushed forward to the SEC, and soon after, Grayscale Investment led by example by crafting an open-ended private BTC trust, namely the Bitcoin Investment Trust.
Fast forward, and BTC exchange-traded funds started to garner plenty of attention, seeing more and more financial bigwigs submitting such requests to the U.S. agency. While all the eyes have been lately on the U.S. demeanors, BTC ETFs aren’t anything new or revolutionizing. These ventures have long been approved in states like Canada or European ones, facilitating investments to their residents.
However, it’s sound to say that companies selling ETFs, especially BlackRock, are prepping the ground for more mainstream Bitcoin investments and a smoother road to stabilizing prices. Some of the 12 firms enjoying their long-awaited and worked-for authorization include but are not limited to BlackRock, Invesco Galaxy, Fidelity, WisdomTree, Ark Invest, and Fidelity.
Why we need to make a particular case for BlackRock
A BTC ETF is an excellent step in furthering Nakamoto’s primary mission, which fuels hopes that wherever they may be, they proudly approve the move. Likely, bitcoin’s alleged creator is looking at the venture facilitating the purchase of his invention as a significant step toward making it mainstream. However, what’s so special about BlackRock’s ETF, since all those big firms have fought their way through their fair share of empowerment from the SEC?
The spot bitcoin ETF engineered by the biggest asset manager worldwide, BlackRock, demonstrates its potential of becoming the first among a freshly accepted faction of crypto-associated financial products to hit an astronomical total of $1BN in assets under management. Besides, the manager of the heavyweight heartedly believes in the power of ETFs to offer people access to a currency that authorities and their undisclosed intentions can’t foolishly control.
The future looks bright for Bitcoin through ETFs
As you can see, those wanting to invest in Bitcoin but lacking a significant purpose can now do so – all without self-inventing or creating a raison d’etre. More steps forward are projected to be taken in this direction, so keep tabs on the heavyweight’s deep diving into the new sector.