Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impact?

in hive-108451 •  last year 

Hi everyone!AssalamuAlaikum.

At this time, I'd like to share information about the Steemit contest, specifically the Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impact? In the selected community, Steemit crypto academy.

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What is a Bitcoin ETF, and how does it differ from owning bitcoins directly?
An ETF is an Exchange-Traded Fund that has effectively the same price as Bitcoin or replicates the differences in its value. As it is done when buying common stocks, investors can trade share of the ETF using traditional brokerage accounts. Bitcoin is the underlying asset of the ETF, whose value also depends upon the performance level of Bitcoin.

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  1. Accessibility: Bitcoin ETF allows to widen the number of investors indirectly exposed to price variation in bitcoins without standing for acquiring, storage, and management of these coins. This service comforts investors who might, for instance, find it heavy or technologically demanding to handle bitcoins in the traditional way.

  2. Regulatory Framework: Bitcoin ETFs, in contrast with the relatively new and unregulated nature of this crypto coin itself, function under rules within established financial markets governed by bodies that include but are not limited to such as the Securities and Exchange Commission (SEC). On the other hand, even without those custodians, one still has to keep private keys and manage wallets without such scrutiny.

  3. Custody and Security: The custodianship of the fund manager protects investors against a loss or theft due to misappropriation, as well as starter and safekeeping. Alternatively, direct ownership of Bitcoin requires individuals to conduct their custody services, often through hardware wallet systems software wallets and using custody services.

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  1. Costs and Fees: The performance or the whole rate of return from Bitcoin investments made in exchange traded funds might differ due to the applied management fees and expenses associated with fund managers’ activities. Bitcoins directly owned by a person usually carry less recurrent expenses unless for the ones buying and/or selling bitcoins at the cryptocurrency exchange, paying some sorts of fees upon every transaction.

  2. Tax Implications: The main difference between owning Bitcoin ETF and Bitcoin direct can be seen in tax treatment at some jurisdictions dictates different tax treatments on a subjective basis. In order to understand the tax treatment of their investments, investors should seek advice from particularly tax professionals.

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Basically, although the two forms of investing in Bitcoin via a Bitcoin ETF and owning direct bitcoins require investors to share the volatility as each team fluctuates with that of Bitcoin; they vary on accessibility, regulatory oversight, custody and security costs and fees.

How can the approval of a Bitcoin ETF by the commissioner of the American Stock Exchange SEC influence the cryptocurrency market? And why did it fall just after this approval?

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  1. Enhanced Accessibility: An approval of a Bitcoin ETF makes navigating through traditional channels to bitcoin investment easier and eliminates the hassle that comes with direct purchase of cryptocurrencies. This simplified path into the market may attract both large number investors plus small retail, incentivising their demand and another buying-fueled price appreciation.

  2. Market Integration: The introduction of a Bitcoin ETF into the established financial system adds to Bitcoin’s reputation and appeal on the part of investors, who can be considered ‘mainstream’. This consolidation leads to an increased number of market participants and liquidity thus providing the means for preventing widely facing price destabilizations leading Bitcoin to a more stable investment opportunity.

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  1. Regulatory Reassurance: An endorsement by the SEC of a Bitcoin ETF provides some measure of comfort to investors that well-conceived cryptocurrency regulatory architecture addresses the concerns reflected in an Agnew order. This could provide a significant boost of confidence that may catalyse the involvement more institutions which will strengthen market development and sustainability.
  1. "Buy the rumor, sell the news" Phenomenon: The preevaluation high pricing may already be written into the markets, and investors use the official announcement as an opportunity to sell their positions to a capitalized marketplace if indeed pre-approval anticipation had inflated prices before this public declaration.

  2. Profit Realization: Investors would be in a race to capture their returns given approval by the ETF for such FMCG stocks and that could trigger selling pressure, falling prices.

  1. Inherent Market Volatility: As its so-called nature, the market for cryptocurrency is very unstable because it can easily be influenced by different things like investor sentiment, expressionism, and factors of macroeconomic as well. As a result, the short-term price volatility after ETF approval may be caused primarily by such potential inherent hysteresis dynamics rather than approval per se.

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Overall, although SEC approval of a Bitcoin ETF brings with it great potential for long-term market development and recognition, short-term market fluctuations following the approval may be caused by various charge that there is clear inaction regarding the missing 45 percent. The key idea that there is no trace of action concerning the unaccounted10percentobjects as well as creates worry towards reviewing whatever.

How could the approval of a Bitcoin ETF by a financial authority such as the SEC contribute to the legitimacy and institutional recognition of cryptocurrencies?

The SEC would provide their approval to the Bitcoin ETF has deep significance for not only the recognition but also for institutional acceptance of cryptocurrencies.

Initially, regulatory and by implication the approval of the SEC would bring a positive impact in that Bitcoin would be viewed as a credible asset class. Such a validation would increase investor’s confidence, not only with institutional investors but also with retail ones that will have the assurance that Bitcoin complies to regulatory standards.

In addition, a SEC approved Bitcoin ETF would let even a non-technical investor participate in Bitcoin’s growth without worrying about acquaintances and the counterparty risks all bundled up. Such dismissal could overcome the conservatism of some investors, who initially shunned it for reasons related to complications associated with direct ownership of cryptocurrency.

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Additionally, the incorporation of a Bitcoin ETF may strengthen bitcoin s liquidity and stability by drawing a wider investor group. Increased liquidity would support in doing away with the problems of price discovery resulting to lesser volatility making Bitcoin convenient for new investors.

Moreover, the SEC’s approval would further solidify the perception that Bitcoin is a reliable asset and means of investment after transition from it being speculative to deeming it aspect of conventional economy.

Additionally, the approval would encourage innovation within the cryptocurrency and blockchain space leading to developing n innovative products that can attract a new model of investors. This type of diversification can strengthen and multiply the news digital asset ecosystem.

In the end, or not only in the near future will be a very decisive moment for Bitcoin and cryptocurrencies which can be happened at SEC’s approval of a Bitcoin ETF to support and prove that they are legal financial instrument.

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How might the introduction of an SEC-approved Bitcoin ETF interact with the decentralized governance of the STEEM blockchain, and how might these two approaches complement or diverge in investors' perspectives on asset management? digital assets?
  1. Increased Mainstream Attention: The Classification of Bitcoin ETF would add gravity to digital property and Blockchain innovation, including WoJOPs like STEEM. The new visibility can lead to improved users and investors on the platform, which in turn may influence how the governance dynamics of the STEEM blockchain change.

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  1. Market Correlation: A curious investor of Bitcoin can also look for other virtual assets which specifically include the cryptoprototype on the STEEM. Therefore, the prices and sentiment in Bitcoin correlated further with those of STEEM might also be applied to decision making in the STEEM ecosystem.

  2. Regulatory Scrutiny: The positive effect may as well be in the form of strengthened regulation or regulatory scrutiny into other digital asset platforms such as STEEM. Also, regulators can be more focused in how compliance, token issuance and governance structures have impacted the way they operate both their business activities on these platforms.

  1. Complementarity: Blockchain technology is a major driver of investment as many investors who are bullish on Bitcoin invest in platforms like STEEM that complement the blockchain, especially when they believe in its widespread future potential. They can perceive Bitcoin as well STEEM under the same umbrella, completed with diversified digital portfolio.

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  1. Divergence: Bitcoin might enjoy a different view among investors compared to STEEM platforms. They could consider Bitcoin as a value reserve or digital gold, while designations like STEEM as more speculative and aimed at providing utility within the specific framework. This difference may result in differences between investors with regards to their preferred investment strategies and varying risks that they prefer to handle.

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Written by@danish578
Contest-TopicSteemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impact?
CommunitySteemitCryptoAcademy
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Beneficiaries25% @null
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You wrote so well and over all you at post presentation is amazing and the use of mark down style is on point and when you are talking about the rules and regulation and the security we have got it just a amazing I think that the main security guard which is attracting the investors and second thing is we don't need to sign up because the person like me who always forgot to secure the key so you have talk about in so much detail and I think you are doing great job best of luck

Thanks alot Mate fpr such a nice comments glad to see taht you like Me Security Details And Took the Point.

Welcome keep doing great work

Upvoted! Thank you for supporting witness @jswit.

Thanks alot for upvote


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Hello @danish578 Your in-depth analysis of Bitcoin ETF is truly enlightening. The way you've explained its impact on accessibility regulatory oversight and market dynamics is impressive. Your insights into SEC approval and its potential effects on the market and legitimacy of cryptocurrencies are well-articulated. Also your thoughts on how it might interact with STEEM's decentralized governance add an interesting perspective. Best of luck

Thanks alot mate for dropping an amazing comment on my post

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Greetings friend,
I have to say, your analysis of Bitcoin ETF is absolutely mind-blowing. The way you've explained how it affects accessibility, regulatory oversight, and the dynamics of the market is truly impressive. Your insights into SEC approval and how it could impact the market and the legitimacy of cryptocurrencies are so well put. And I really appreciate your thoughts on how it might interact with the decentralized governance of STEEM, bringing a unique perspective to the table. You really know your stuff. Best of luck to you.

Thanks alot mate thanks alot very happy after seeing a nice appreciating comment from your side thanks again brother

You have highlighted the top notch points and in a very comprehensive and detailed way you are going to answer and you must doing trading over knowledge and wishing you success

Greetings, my friend @danish578! Your insightful analysis on Bitcoin ETF showcases a deep understanding of its impact on accessibility, regulation, and market dynamics. Your clarity stands out in simplifying complex concepts. All the best in the contest, success for you! 👍

Thanks alot dear for such a nice comments on my post .

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Custody and Security: The custodianship of the fund manager protects investors against a loss or theft due to misappropriation, as well as starter and safekeeping.

I totally agree with this point and I like your statement in which you have explained about the custody and security difference between owning BTC directly and in having BTC ETF shares.Good luck brother

Thanks alot brother for such a nice comments and agree with my point

Good 👍😊
Keep smiling 😁

Resalto el punto donde mencionas las implicaciones fiscales para las inversiones en los ETF de Bitcoin. Puede ser un punto muy relevante que haría una gran diferencia en los costos de operación en el mercado bursátil.

Sin duda la caída del BTC tras la aprobación de los ETF de Bicoin por parte de la agencia reguladora (SEC) tiene muchos causantes como un Pump&Dump, o un retiro masivo de algunas ballenas o migración de capital al mercado bursátil, etc. La buena noticia es que no es el fin de BTC y ahora es que queda tela por cortar.

Saludos y éxitos.

Thanks alot for such a nice comments and for reading my post sir thanks again

¡Saludos amigo, feliz día!

The main difference between owning Bitcoin ETF and Bitcoin direct can be seen in tax treatment at some jurisdictions dictates different tax treatments on a subjective basis.

Bitcoin ko directly own karne mein aur uske shares ko pass rakhne mein kya difference hai aapane bahut acchi Tarah se byan kiya hai aur aapane tax ke bare mein yah Jo statement di hai mujhe isase ittefaq hai main aapki koshish per aapko good Luck kahati hun.

Thanks alot dear for appreciating 😊

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