What was the excitement after the approval of the Bitcoin ETF?

Many new investors may still be wondering whether the approval of the Bitcoin ETF by the U.S. SEC is a good thing. 

Today, Bitazza will acquaint you with the Bitcoin ETF.

What is ETF?

ETF, or Exchange Traded Fund, is a financial innovation that combines various assets, such as gold bars, silver bars, or shares of leading technology and insurance companies, without the need for direct individual purchases of these assets. Some funds already have a proportion of their holdings in Bitcoin, but the Bitcoin ETF allows direct purchase of Bitcoin at market prices instantly.

Advantages of Bitcoin ETF

Easy, convenient, safe, and helps diversify risk. ETFs are regulated financial products, and some Bitcoin ETFs may invest in other digital assets or blockchains, providing diversification in a single investment. New investors can invest in Bitcoin without worrying about managing digital wallets or the process of exchanging digital currencies. It is predicted that billions of dollars will flow into the Bitcoin market as financial companies begin to buy these digital coins.

Risks of Bitcoin ETF

The price of Bitcoin remains highly volatile and unpredictable, and management fees may impact returns more than self-directed investments. Additionally, regulatory uncertainty that can change over time may constantly affect prices.

However, according to the announcement of the Thai SEC in 2017, retail investors are not allowed to trade Spot Bitcoin ETFs. Only institutional investors or investors with financial institution-type status, or investors with investment assets in securities, derivatives, or deposits totaling at least 50 million THB (excluding permanent residents), can trade Spot Bitcoin ETFs.

What else should we keep an eye on next? There’s a prediction that an Ethereum ETF might receive a decision from the SEC in the United States by May this year, causing Ethereum prices to surge recently. We will continue following to see how true this is. Stay tuned for updates

Stay tuned for the latest updates and news! Analyze investment opportunities that align with your goals. If you’re considering diving into the world of digital assets, look no further than Bitazza, a platform that is convenient and secure.