What does the new Bitcoin futures ETF mean for investors?
The rollercoaster ride of Bitcoin continues after the cryptocurrency hit another milestone with the launch of the ProShares Bitcoin Strategy Exchange Traded Fund on the New York Stock Exchange on Tuesday, which allows investors to invest in the digital coin through futures contracts rather than owning it outright.
Some financial analysts believe this is going to be a big deal that will drive the price higher — to $100,000 and beyond — by giving institutional investors the confidence and security to invest in Bitcoin.
So far, the optimists are feeling vindicated.
Traditional ETFs allow retail investors access to hand over investment decisions to an expert with insight into market data and research, Katharine Wooller, UK managing director at cryptocurrency wealth platform Dacxi, says. In this case, there is a catch. “With Bitcoin, no fund manager performance data exists.”
By trading future price movements, she says the ETF is essentially betting on price volatility. “Trying to predict the ups and downs of Bitcoin is like playing a game of ‘pin the tail on the donkey’.”
Read the full article here: https://www.thenationalnews.com/business/money/2021/10/21/what-does-the-new-bitcoin-futures-etf-mean-for-investors/
