Bitcoin ETF Can Increase by 5400% and Boost Investments

The market of cryptocurrency and blockchain technology is expanding rapidly as users are reaping many benefits from both. Although cryptocurrencies are deemed unstable, they have nevertheless gained enormous popularity because of high returns. The immunity against inflation is also a major feature of cryptocurrencies like Bitcoin. The approval of the Bitcoin ETF by the SEC is a novel idea and it can soon boost investments.

Bitcoin ETF Can Boost Investments

The Wall Street analysts feel that iShares Bitcoin Trust can grow 1050%-5400% based on the promising trends within a short period. Ever since it was approved, it has already attracted a large share of billionaire investors. This will invariably increase the demand and prices will rise considerably. 

The Securities and Exchange Commission in the US (also called SEC) made headlines by approving the Bitcoin ETF in January this year. Before the approval, Bitcoin was already gaining record value. Once the approval was made, many hedge fund managers purchased a vast portion of shares in iShares Bitcoin Trust. 

Benefits of Bitcoin ETF

Bitcoin ETFs augur well for the future of the cryptocurrencies. Supply and demand hold the key to the concept of Bitcoin but Bitcoin ETF will be different. It will help investors to access Bitcoin better without facing much volatility. 

Diversification of Investments

Bitcoin ETF does not hold just one asset. It may hold other assets such as Facebook stocks, and Apple stocks, and provide investors with the scope to reduce risks. Most financial experts agree that diversification of portfolios and risk mitigation are necessary for increasing the chances of getting higher returns.

Tax Efficiency

Bitcoin ETF trading will be eligible for tax efficiency and the SEC will regulate it. Pension funds and tax havens mostly do not allow Bitcoin purchases. This disadvantage may become irrelevant because of tax efficiency.

Convenience

Bitcoin ETF offers leverage to the price of Bitcoin without having much to learn. The new investors will find it more convenient and need not learn how Bitcoin works. As a result, owners do not need to take risks by directly owning Bitcoins. 

Also Read- Mitigating Common Cyber Security Threats of Cryptocurrencies

Conclusion

Bitcoin ETF can be a game changer in the field of cryptocurrencies. Since it has generated a lot of enthusiasm, there is speculation by Wall Street analysts that investors may get windfall. The approval is a clear indication that the governments are gradually changing their hostile attitude.  Its relatively fast-growing popularity will have a positive impact on the prevalent attitudes towards cryptocurrency enthusiasts. It will encourage more investments and will help many people to realize their dream of achieving financial freedom.