Bitcoin exchange-traded fund (ETF) puts the cryptocurrency on the same level as stocks. A Bitcoin ETF allows people to invest in the long-term value of the cryptocurrency.
The approval or denial of the Securities and Exchange Commission (SEC) of a Bitcoin ETF could have a significant impact on the Bitcoin price—one that can dictate the behavior of Bitcoin casino players or even the Bitcoin markets.
One of the ETFs that will either get approved or denied this weekend is the Winklevoss Bitcoin ETF. The decision will be announced on March 11. Operators and players in Bitcoin gambling should keep an eye out on the said day as this could affect the value of their bankroll.
Bitcoin ETF basics
To understand what a Bitcoin ETF is, it is important to know the basics of an ETF. An ETF is simply a finance vehicle that can keep track on a specific asset’s performance. The vehicle will have the same value as what the asset is going to be. Assets include stocks, currencies, or precious metals like gold.
It is important to note that those who invest in an ETF will not actually own the asset itself. Investors will only get a vehicle which will come with the current value of the asset or Bitcoin.
What is the use of an ETF if it does not come with any asset or digital currency with it? Simply put, ETF is for those willing to invest in the value of Bitcoin directly without having to actually own the cryptocurrency itself. This makes Bitcoin accessible for people interested in riding the price increase of Bitcoin but is not interested in buying and securing the digital currency.
Security of the asset
Thanks to the Bitcoin ETF, investors that trade on the New York Stock Exchange will have a good reason to invest in Bitcoin. The primary concern of an investor when it comes to Bitcoin is in storing and security of the coins. The Bitcoin ETF answers this concern by addressing the security of the asset itself.
The SEC is yet to approve or deny the Winklevoss Bitcoin ETF. It has up to March 11 to finalize its decision. Another Bitcoin ETF is the next in line to get a decision, and this is the SolidX ETF. The Winklevoss twins still get priority since its ETF request was more than three years ago.
If the SEC does not provide a decision on March 11, the Bitcoin ETF will get its approval by default. However, this has a low chance of happening since this is the first ETF of its kind that has Bitcoin as its asset.
Effects of an approved or denied Bitcoin ETF
An approved Bitcoin ETF will open the cryptocurrency’s doors to a wave of investors. Experts are speculating that there will be a $300 million injection into the Bitcoin market. This amount could drive the Bitcoin price to a higher level . Any bettors or online casino players’ bankroll in casinos could double or triple in value if there is an approved Bitcoin ETF.
Even if the SEC denies the Winklevoss Bitcoin ETF, there will be no significant negative effect on the price of Bitcoin. Meanwhile, there are other Bitcoin ETFs waiting in line for the SEC’s decision. At the same time, Bitcoin users can still exchange Bitcoin in US through reputable Bitcoin exchanges and ATMs.