If you’re asking yourself, “Is Bitcoin a good investment?” Here’s some news for you.
BlackRock, one of the world’s investment giants, filed for creating an exchange trading fund for bitcoin in June. The news moved Bitcoin prices up by double-digits in recent weeks.
BlackRock’s spot ETF was considered to be a huge step ahead in the market, not only because of the huge scope of the investment firm’s clients, but also because the ETF would allow investors to buy Bitcoin as ETF stocks using a broker’s account.
While funds that hold Bitcoin futures were approved earlier and now can trade on regulated U.S. exchanges, spot Bitcoin ETF was a long awaited event in the industry. But who are Bitcoin ETFs so hoped-for?
Bitcoin trust and spot Bitcoin ETF are aimed at tracking the actual price of Bitcoin. Through these products, investors can gain access to BTC via a regulated and familiar product without actually holding Bitcoin.
There is no simple and legal way in the market to invest in Bitcoin in the form of traditional stocks. The most well-known solution for buying Bitcoin-as-shares is currently provided by the Grayscale Bitcoin Trust. However, the fund does not trade in the tier one stock exchanges. Besides, Grayscale charges a management fee of around 2% per year, which is a very high fee compared to the 0.5% for other ETFs.
BlackRock was not the first in the market to launch a spot bitcoin ETF. The above-mentioned Grayscale and some other funds also had requested to start exchange-traded funds, but had faced SEC rejection.
Now SEC rejected the BlackRock’s ETF, which has led to the significant fluctuation in the largest crypto value.
On Friday, Bitcoin was traded on the edge of its peak value near $31,500 which is the highest value since June 2022.
So, if you’re wondering, “Is Bitcoin a good investment?” It is when you know when to invest in it.
The second largest crypto — Ether — was not exposed to the market fluctuations and was traded at $1,850. Smaller cryptos, like Cardano and Polygon, went up by 2% and 1% accordingly.