A Bitcoin ETF is something surfacing from time to time - and lately more frequently than before. But when should you really expect such an ETF to get a go-ahead from the SEC, and start being offered to the general public - aka retail investors? Here are all the information you need to know.
Do retail investors need a Bitcoin ETF?
Today, anyone wishing to buy Bitcoin - or any other crypto-asset - needs only to open an account with one of the 200 exchanges out there, transfer some money, and place an order. You can't make it any simpler than that. So, it's not Bitcoin ownership, an ETF may bring to retail investors. It's management of that ownership that retail investors are looking to get from an ETF, which means higher returns than Bitcoin market price. That's something only price fixers can guarantee. And that's where all issues with a Bitcoin ETF start.
Bitcoin markets are not regulated
That's something everyone knows. What very few know though, is that ETFs are regulated securities, and regulated securities are not allowed to invest in unregulated markets, anywhere in the world. In fact, the two crypto-related ETFs already available, are only allowed to invest in crypto-related stocks, but not directly to crypto-assets. The fact that FED or SEC have no intention to ban crypto, does not mean they would approve an ETF that would directly invest in Bitcoin. At least not until the Bitcoin market gets regulated - and none of those involved is willing to go through regulations.
Bitcoin price is highly volatile and prone to manipulation
Just like an ETF investing exclusively on penny stocks, would never get authorization to trade, same happens to an ETF that would invest solely, or mostly, on Bitcoin. So, until Bitcoin gets less volatile (and this is not going to happen any time soon), you shouldn't expect an ETF coming out in the foreseeable future.
Why then analysts say that an ETF is imminent?
If you look at who those analysts are, then you have your answer. They are either working for the price fixers, or they are Bitcoin junkies with zero market knowledge, who simply wish to pose as experts - yeah, right. Nobody with even basic knowledge about how SEC works and how it is regulated, would ever seriously serve such bull to their audience. The imminent Bitcoin ETF is part of the $100,000 price mark myth, that is served to offer price pumping justification. The suckers (this is you, by the way), have no idea, and are not interested to learn anything about ETFs. They are only looking to listen to anyone telling them what they want to hear.
Note: Hedge funds are also unit-based funds, intended for accredited investors, not the general public. Such funds invest mostly in futures contracts, not on the underlying assets.
