Exchange investment fund on blockchain launched in America. Opinions about him and the future of the fund are divided.
In early February, an important event happened in the cryptocurrency industry – the ETF on blockchain was launched in America. Companies operating in the areas of blockchain and cloud services control it. ETF will buy securities, depositary receipts of US firms and invest in other assets. Cryptocurrency investments to the fund are prohibited.
We understand what ETF is, who opposes the fund’s activities and what benefits it can bring to the market.
What is ETF?
ETF is an index fund whose shares are traded on stock exchanges.
You can also say that it is one of the variations of securities, which acts as a certificate for a portfolio of stocks, bonds and other exchange-traded elements. The price of the paper is pegged to the index and follows it based on specific assets.
What is the use of investors and the market of exchange-traded investment fund?
In order to invest in Bitcoin ETF, an investor does not have to open a cryptocurrency wallet, open an account on the stock exchange and then worry that hackers steal his money. Risks of hacking into the fund, phishing attacks or management fraud are also absent here.
Thus, participation in the exchange investment fund is suitable for those investors who do not want to learn a new area for themselves and delve into the subtleties of blockchain technology.
Experts also believe that Bitcoin ETF will be able to attract significant investments in the digital market, which will lead to an increase in its capitalization.
What do project critics say?
The launch of ETF has caused skepticism from a number of well-known experts of the cryptocurrency industry.
For example, analyst and trader Ton Weiss believes that the cost of BTC after the launch of a new fund may not increase. Evangelist and digital expert Andreas Antonopoulos is more radical in his ETF assessments. In his opinion, the appearance of the fund will make the cryptocurrency market more centralized, which goes against the original essence of cryptocurrencies and blockchain.