What is a Bitcoin ETF?

There is a huge emphasis on Bitcoin ETFs in the investment community.

Jackson Zeng, COO, Caleb and Brown breaks down the jargons to give his take on this hot topic.

• What is a Bitcoin ETF?
• Why does it matter?
• How does this affect the market?

1. What is a Bitcoin ETF? A Bitcoin Exchange Traded Fund (ETF) allows Bitcoin to be traded on the stock market. A trust would hold the asset on behalf of the fund while investors can trade its shares on the exchange.

2. Why does it matter? Trading of Bitcoin currently involves digital asset custody. Investors and Institutions are concerned about handling that risk themselves. A Bitcoin ETF provides a new option for traders to get exposure to Bitcoin without having to worry about securing the digital asset themselves.

3. How does this affect the market? Reducing the barriers to entry enables a new category of investors to join the market, which may spell greater liquidity and positive price movement as that money enters the space. It will also be a step forward in regulatory clarity on Bitcoin

Experts views from other sources:

• SEC Commissioner's (Hester Peirce) twitter enjoys increased popularity following Bitcoin ETF defense - by Georgi Georgiev, Bitcoinist.com
• An Open Letter to the SEC | The Case for a Bitcoin ETF - by Nicholas Merten, Founder Data Dash, Top cryptocurrency Youtube influencer and content creator.

Jackson Zeng is the COO at Caleb and Brown is available to guide new and seasoned investors. Jackson has five years of trading experience in the cryptocurrency space and founded Bit By Bit Capital, one of Australia's first private trusts investing in cryptocurrency. Call Jackson on +61 1800 849 149 or Contact Us to discuss further.