$BTC
About #ETFs
What is a #BitcoinETF and #ETHETF ? Why do many people naively believe that ETFs organizers are the big buyers of BTC or ETH? No no and one more time no.
In simple terms, a ETF is simply an intermediary between the buyer of cryptocoin and its seller. This is a kind of financial instrument. That is, to buy cryptocoin, a buyer who does not want to bother with crypto exchanges goes to a ETF and buys a document there that confirms that the buyer has different cryptocoin.
You have to understand that these large institutions that organize the ETF do not buy it themselves. That is, to be more precise, ETF funds buy for example BTC or ETH for their clients and with the funds of their clients. But they don’t buy it for themselves and with their own funds. Thus, it is very unlikely that they will be able to influence the growth of the price of BTC or ETH.
Moreover, in fact, ETFs do not even risk their income from changes in the price of cryptocoin. It doesn’t matter whether its price rises or falls, for each transaction the fund earns a commission from 0.25%. From this point of view, these funds are useless. In fact, it is even easier and more cost effective to buy any cryptocurrencies through spot or DEX exchanges, bypassing the unnecessary intermediary.
Considering all of the above, there is doubt that Bitcoin or other ETF funds will have a good future and will somehow significantly affect the market.
