LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
No Result
View All Result
Bitcoin ETF Approval? Not Until Some Things Change, Says SEC's Jay Clayton
Bitcoin News

A Bitcoin ETF Has Made It to the U.S., but Is It What Traders Are Looking For?

by Nick Marinoff
October 22, 2021
in Bitcoin News, News
Share
logo

Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000

Sign up

A bitcoin-based exchange-traded fund (ETF) has finally made its way to the middle of North America. The United States has long awaited the introduction of a bitcoin ETF after many years have gone by of companies submitting applications only to have them rejected ungraciously.

A Bitcoin ETF Has Made Its Way to the U.S.

This new product is being offered by Pro Shares and is being traded on the New York Stock Exchange (NYSE). It trades under the ticker BITO, and investors can potentially buy their way into the bitcoin market without experiencing the risks they’d encounter when directly purchasing crypto on a digital exchange or similar platform.

Since 2017, many businesses and financial enterprises have worked tirelessly to get greenlights on their bitcoin ETF proposals. Companies such as Van Eck and Bitwise – arguably two of the most famous and prominent ones – have strived to be the first ones at the table of this developing market, but the journey has been wracked with hardship and failure, with firms like Van Eck ultimately submitting as many as three different applications to the Securities and Exchange Commission (SEC).

The first two were cut out almost immediately, while the third was under consideration for so long that Van Eck wound up pulling the plug on the application itself. What a nasty way to go out…

Now, the ETF that everyone has been waiting for has finally and truly arrived. It’s good news for many, but for others, the product needs to be taken with a grain of salt. Mike Hunsberger – a financial planner – stated in a recent interview:

Consumers should definitely approach it with some skepticism.

One of the big reasons for this skepticism is that the ETF does not hold, nor does it trade directly through bitcoin. Rather, it is based on bitcoin futures, which many analysts have issues with considering they are considered inferior products. Also, the fact that the product is based on bitcoin futures technology means it may be regulated under an old 1940s rule that applies primarily to mutual funds.

Many analysts have argued that this law should be amended to fit the changing products the financial space is looking to offer, though Gary Gensler – the current head of the SEC – is arguably showing himself to be reluctant and slow when it comes to implementing the necessary adaptations.

Dana J. Menard – a CFP and founder of Twin Cities Wealth Strategies in Minneapolis, Minnesota – explained in a statement:

Futures contracts are derivatives of bitcoin and are not directly backed by physical bitcoin.

A Few Issues with the Product

Hunsberger is particularly against a futures-backed ETF given that it allegedly does not allow investors full earning capacity. For example, he says that if the price of bitcoin rises by 30 percent, the ETF is only likely to provide investors with 20 percent returns. He says:

Futures ETFs hold contracts that periodically expire and must be repurchased.

Related Posts

Germany Says “No” to Binance, Denies Company a Crypto License
Bitcoin News

El Salvador Grants Two BTC Licenses to Crypto Exchange Binance

Binance and El Salvador are joining hands to boost the nation’s long-running bitcoin agenda. The digital currency exchange –...

by Nick Marinoff
September 23, 2023
PayPal is Now Issuing Its Own Stable Coin
Altcoin News

Charlie Shrem: The New PayPal Stable Coin Will Be Good for BTC

PayPal recently shocked the world by announcing it would be creating its own stable currency atop the Ethereum network....

by Nick Marinoff
September 23, 2023
Crypto Firm Puffer Finance Garners More Than $5 Million
Ethereum

Crypto Firm Puffer Finance Garners More Than $5 Million

Blockchain infrastructure company Puffer Finance has recently garnered more than $5.5 million through a seed round that was co-led...

by Nick Marinoff
September 23, 2023
Two Victims of Crypto Scams Lose More Than $30K
Bitcoin News

Two Victims of Crypto Scams Lose More Than $30K

Crypto scams are more prevalent today than ever. Not long ago, two residents of Southborough were scammed out of...

by Nick Marinoff
September 22, 2023

Top Casinos

Crypto Casinos
Crypto Casinos
Bonus Finder
Bonus Finder

Press Releases

  • Alaya: The Pioneer of Artificial Intelligence Data

  • Zeebu Secures $25 Million in Presale Funding for World’s First On-chain Invoice Settlement...

  • Reef Labs $10M Accelerator Program COHORT 1 Begins, Paving the Way for Web3 Innovators

  • Registration for the Finance Magnates London Summit 2023 is officially open!

  • Tapbit Introduces Contract Copy Trading: Unlocking Profits for All Investors in the Cryptocurrency...

About us:

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin…

Follow us:

  • This field is for validation purposes and should be left unchanged.

  • About
  • Partners
  • PR
  • Advertising
  • Privacy
  • T&C
  • Contact
  • Trading Software
  • Online Casinos Germany

© 2023 Live Bitcoin News. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise

© 2023 Live Bitcoin News. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.
Go to mobile version