Whether the recent Bitcoin ETF can be passed and whether it can be passed on time affects the hearts of everyone in the crypto market. But what does the passing of the ETF mean? What impact will it have on crypto investors and traditional investors? How can we ordinary users participate in ETFs? If you want to track the progress of an ETF, what information should you pay attention to?

Written by: SoSo Value

🙋 What impact will the Bitcoin ETF have on the market after it is passed?

🎙️ - First, it will make it easier for traditional investors and institutions to enter the cryptocurrency market, as they can invest through familiar trading platforms and brokers without direct contact with cryptocurrency exchanges. This convenience** is expected to attract more funds into the crypto market and promote the development and maturity of the market. Standard Chartered Bank predicts that by the end of this year, there will be US$100 billion in capital inflows into Bitcoin ETFs. Bloomberg ETF analysts believe that the inflows of Bitcoin ETFs are expected to reach US$15 billion**, and the inflows of AUM will reach 50 billion. Dollar.

In addition, Bitcoin spot ETF will improve the liquidity and price discovery mechanism of the crypto market. The emergence of Bitcoin spot ETF will bring higher liquidity to the Bitcoin market and increase market trading volume and activity. At the same time, since the trading price of ETFs is usually based on the net value of the underlying assets, this will help to more accurately reflect the supply and demand relationship in the Bitcoin market.

The launch of Bitcoin spot ETF will also provide investors with more investment options and diversified strategies, allowing investors to choose appropriate investment strategies based on their risk preferences and investment goals.

However, the launch of Bitcoin spot ETFs also faces regulatory and compliance issues. In addition, due to the volatility of the Bitcoin market, **Bitcoin spot ETFs may face price premiums or discounts, bringing risks and uncertainty to investors. For example, ETF market maker Reginald M. Browne previously stated in a Bloomberg TV interview that the Bitcoin ETF will have an 8% premium over the net asset value in the early stages of trading. **

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🙋 How do ordinary users participate in ETFs?

🎙️ First, let us quickly get to know several large institutions currently participating in Bitcoin ETF applications

• Ark Invest: has invested in cryptocurrency exchange Coinbase, Bitcoin trust Grayscale and payment processor Square. Ark Invest has partnered with Swiss ETF provider 21Shares AG to submit an application for the ARK 21Shares Bitcoin ETF.

• Fidelity: Fidelity, which manages about $11 trillion in assets, filed an ETF application for the Wise Origin Bitcoin Trust. The company’s Digital Asset Services unit is responsible for custody of the trust’s Bitcoin.

• Bitwise Asset Management: Bitwise is known for managing the world’s largest cryptocurrency index fund and has previously submitted an application for the Bitwise Bitcoin ETP Trust to the US SEC.

• Galaxy Digital: A diversified financial services and investment management innovation enterprise in the fields of digital assets, cryptocurrency and blockchain technology. An application for the Invesco Galaxy Bitcoin ETF was submitted in partnership with Invesco.

• WisdomTree: An asset management company and ETF sponsor known for its innovation in the field of ETFs, WisdomTree has successfully launched a Bitcoin ETF in the Swiss market before applying for a Bitcoin ETF in the United States.

• Valkyrie: As a newer asset management company, Valkyrie submitted an application for a Bitcoin ETF in January 2021. The company’s ETF plans to trade on the New York Stock Exchange Arca.

• Grayscale: known for its Bitcoin Trust (GBTC) and has been a major player in the cryptocurrency investment space, has announced that it is 100% committed to converting GBTC into an ETF.

• BlackRock: BlackRock, the world’s largest asset manager, submitted an application for a Bitcoin spot ETF, proposing Coinbase as the cryptocurrency custodian and market data provider. BlackRock’s ETF application was approved Supported by former Barclays CEO Bob Diamond.

• VanEck: One of the earliest BTC ETF applicants, as early as 2018, it cooperated with Solid to launch the VanEck SolidX Bitcoin Trust. Although the application was withdrawn in 2019, VanEck later tried again to launch a BTC ETF.

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🎙️ Ordinary users can participate in Bitcoin ETF in the following ways

Purchase ETF shares: Users can open a securities account at a securities brokerage company. Most securities companies provide online registration and account management services. After the ETF is approved, ETF subscription can be made through overseas brokers or ETFs can be purchased directly in the secondary market. share.

** Directly purchase BTC and share the market increase brought by ETF: ** Users can directly purchase Bitcoin on cryptocurrency exchanges such as Coinbase, Binance and other platforms. The launch of Bitcoin ETF may have an impact on the overall market. Users can Share this market delta by holding Bitcoin. You can check the Bitcoin market on Coingecko, SoSo Value and other platforms, and follow relevant news in a timely manner.

**Futures Trading:**Bitcoin futures are standardized contracts that buy or sell Bitcoin at a pre-agreed price on a specified future date. This method allows investors to conduct leveraged trading and is suitable for investors who hope to profit from predicting the price trend of Bitcoin. It is also often used to hedge risks.

**Options Trading:**Bitcoin options are contracts that give the buyer the right (but not the obligation) to buy or sell Bitcoin at a specific price on a specific date in the future. Options trading is divided into “call options” and “put options”. The main advantage of option trading is that the risk is limited, and the investor’s maximum loss is limited to the premium paid to purchase the option. If the market moves in the same direction as the options contract, investors can earn higher returns. You can also hold spot while selling call options, which is a robust arbitrage strategy. In this way, investors can hedge some of the downside risk by earning additional income by selling options while maintaining the long-term appreciation of Bitcoin.

**Continue to pay attention to market dynamics and buy and sell spot: **After investing in Bitcoin ETF, users should continue to pay attention to market dynamics, ETF performance, and relevant financial news and reports to make appropriate investment decisions. ETF-related continuous outflow and inflow information can be followed in real time by professional information platform institutions. For example, Soso Value is following up and aggregating institutions on Twitter to track the latest ETF developments in real time, including outflows and inflows, and news aggregation. Users It can be found in the ETF section of the website.

🙋 If you want to track the progress of ETFs, what information should you pay attention to?

**Announcements and decisions of the U.S. SEC, as well as agency application documents. **Link:

**Official announcement from applicant institutions: ** Institutions such as Ark Invest, Fidelity, Bitwise, etc. that apply for Bitcoin ETFs may release relevant progress on their official websites or through press releases.

Professional Financial Analysts and Commentators: Follow the social media accounts or blogs of expert analysts and commentators in these fields to gain in-depth analysis and insights. ***Soso Value is following up and aggregating the latest views on ETFs from Twitter and overseas news and investment research institutions in real time. Users can check it in the Institution column of the website. ***

**Financial News and Media Coverage: **Financial news websites, cryptocurrency specialist media, and mainstream news organizations often report on the progress of Bitcoin ETF applications. ***For example, Soso Value is following up and aggregating news on Bitcoin ETF-related developments in real time. Users can check it in the News section of the website to help you better understand the latest trends in Bitcoin ETFs. ***