$BTC

About ETFs

Hype only

What is a Bitcoin ETF? Why do many people naively believe that ETF organizers are the big buyers of Bitcoin? No no and one more time no.

In simple terms, a Bitcoin ETF is simply an intermediary between the buyer of Bitcoin and its seller. This is a kind of financial instrument. That is, to buy bitcoins, a buyer who does not want to bother with crypto exchanges goes to a bitcoin ETF and buys a document there that confirms that the buyer has bitcoin.

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 bitcoins 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 Bitcoin.

Moreover, in fact, ETFs do not even risk their income from changes in the price of Bitcoin. 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 bitcoins and 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.

Speaking specifically about Bitcoin, according to our calculations, its price will fall below the current support level of $63,000 and will soon test the range of $50,000-53,000. And here there will be a decisive level of confrontation between sellers and buyers. A prolonged sideways movement will determine the future fate of the first cryptocurrency and the crypto market as a whole.