# Bitcoin Spot ETF

**Published by:** [Crypto.Pr!e$t](https://paragraph.com/@crypto-pr-e-t/)
**Published on:** 2024-01-11
**URL:** https://paragraph.com/@crypto-pr-e-t/bitcoin-spot-etf

## Content

On Wednesday 10th of January 2024 the U.S Security and Exchange Commission approved the first ever batch of spot bitcoin exchange-traded funds to come out of the united states. This announcement which was globally anticipated because of the impact it would have in the crypto space, hackers went as far as compromising the social media account of the security exchange commission just to announce a fake approval. With such anticipation and hype around it, I deemed it fit to explain the whole concept of the ETF and how it affects the cryptocurrency industry narrowing down my focus on bitcoin as the whole concept of ETF is beyond crypto in it’s sense. What is ETF? ETF is an investment fund the tracks the performance of an underlying asset, That could be stocks, bonds, currencies, precious metal like gold, or, in this case, bitcoin. It’s a way for investors to get exposure to the value of the underlying asset without directly owning it, in similitude to what we do in trading perpetuals, when we trade derivatives instead of the actual asset. Simply put if you’re a forex trader, you would be aware how easy it is to buy gold without actually owning one physically and how that the price of this “virtual” gold is actually pegged to the current value of the actual physical gem basically making gold more accessible to anyone who took interest in buying, that’s exactly what’s happening with bitcoin, a lot of investors, organizations and individuals are quite interested in the whole concept of crypto(bitcoin) but do not want to go through the rigorous process of buying and selling it through different exchanges and also storing it on different wallets to secure it, that’s the problem bitcoin ETF seeks to solve, making bitcoin more accessible to investors, individuals and organization who are interested in buying and selling this asset without necessarily having lots of knowledge about the way the crypto asset fundamentally works. With all this said, How does this affect investors and in turn the crypto industry? With approval of bitcoin ETF in the U.S, there will be increase in bitcoin distribution in the U.S, It will also remove the thought pattern around bitcoin being a scam token there gaining more acceptability amongst individuals, investors and organizations, instead of them buying them on various exchanges which have poor user experience and interface which makes life a lot more difficult for the average person who is not so familiar with the interface instead they can simply buy an ETF from one of the regulated asset managers.

## Publication Information

- [Crypto.Pr!e$t](https://paragraph.com/@crypto-pr-e-t/): Publication homepage
- [All Posts](https://paragraph.com/@crypto-pr-e-t/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@crypto-pr-e-t): Subscribe to updates