Bitcoin ETFs Heating Up Globally: Why?
ETFs have recently caught everyone’s attention, and lots of countries are starting to approve ETFs. What is so exciting about it?
First, let’s discuss the idea of ETFs and then talk about their development around the world.
An ETF basically is an investment tool that tracks the performance of a specific asset or asset group. ETFs enables investors to diversify their investments without actually owning assets.
ETFs provide a simpler alternative to buying and selling personal assets for individuals who only focus on gains and losses.
Many traditional ETFs aim for larger baskets of names that have something in common. They allow investors to diversify their holdings quickly.
Why do investors choose Bitcoin ETF?
Bitcoin ETF is a price that imitates the world’s most popular digital currency. This will enable investors to purchase ETFs without having to go through the complicated Bitcoin transaction process.
In addition, since ETF holders will not directly invest in Bitcoin itself, they do not have to worry about the complex storage and security procedures required by cryptocurrency investors.
ETFs are getting approved around the world gradually
The creation of Bitcoin-linked ETFs has been successful in many countries. For example, companies in Brazil and Canada have launched their own Bitcoin ETFs, and billions of dollars have flowed into these attractive new investment opportunities.
The brazil-based company Hashdex Asset Management has launched a new exchange-traded fund too- BITH11.
This alternative investment company focused on cryptocurrency claims to be the country’s first “green” Bitcoin ETF.
The fund plans to offset its related carbon emissions by purchasing carbon credits.
To achieve the ETF’s goals, Hashdex is cooperating with the Encrypted Carbon Rating Institute in Germany, which will prepare an annual report to estimate the energy consumption and carbon emissions that support the fund’s acquisition of Bitcoin (BTC).
French regulators also approved the asset management company Melanion Capital to begin offering Bitcoin-linked exchange-traded funds (ETFs) in the European Union.
Although the asset is not fully correlated with the price of the world’s largest cryptocurrency, its extensive international market and correlation of more than 90% indicate that investors have made significant progress in their ability to gain exposure to Bitcoin.
