Steemit Crypto Academy/S15W3 Contest – Bitcoin ETF! What impacts?

Hope you all are doing well and good and enjoying the best days of your life. This is me @shahid2030 from Pakistan and you are here reading my post. You all are welcome here from the core of my heart.

This is my participation in a contest Bitcoin ETF! What impacts? organized in SteemitCryptoAcademy by @crypto-academy .

Bitcoin ETF Stand for: Exchange-Traded Fund, is a type of investment fund in which we tracks the price of Bitcoin and it allows investors to buy their shares in the fund. It is similar to that of buying shares of a company or other major stocks.

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The ETF holds Bitcoin on behalf of its investors. When you invest in a BTC ETF, it's mean you are investing in the project of Bitcoin. You must be sure about the performance of Bitcoin, because your capital you have invested here will increase with raise in the price of BTC and it will decrease if Bitcoin dump.

Here you own BTC without keeping directly hold on it. Their is a technical difference between ETF and Owning bitcoins directly. Owning directly means you have purchased and hold the actual cryptocurrency (i e: Bitcoin) in a digital wallet, like Trust wallet or Metaphor. You have full control over your capital, whenever you want you can transfer, sell, or do transactions however you want.

Difference between Direct buying of BTC and buying through ETF.

The key difference between these two methods is, buying Bitcoin through ETF means you're investing indirectly through a fund which is managed by a financial institution. While on the other hand owning bitcoins directly means you have full ownership and control over it and how you ever want can use it. You are alone the owner of it.

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Ofcourse the acceptance of Bitcoin ETF by American Stock Exchange SEC will influence the entire crypto market.Some positive effects of it we can see on in the market. It will be a great news for crypto traders.

Such a news will increase Bitcoin Accessibility. It will be easy for for people to gain exposure to directly to BTC. We don't need to directly buy it. We can see more new investors now. Such news will increase it's demand in the market, hence it's supply will get decreases. In such scenario when the demand is increase and the supply is limited, the price of commodity goes up. We can expect a huge raise in BTC price too after that news.

why could ETF gets fail just after this approval?

We have too many reasons for it's failure. The first possible reason could be over selling of BTC. If the demand of BTC increases we know it's price will obviously get shoot. A huge raise we can see in it's price. Big whale will grab this opportunity, will sell their stock and get exist from the market. Over selling of BTC can result in a dump in the market.

Market manipulator will never miss this opportunity to track the minor traders. They always wait for such a golden chance.

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The News of ETF acceptance will increase liquidity in market. We can see many new investors after this news. This will leads to the Legitimization of BTC. Bitcoin will become the important part of asset class in the world. It will gain more trust of the people. Not only Bitcoin it will increase the credibility of all the crypto currencies.

SEC is not a small institution. It's U.S. Securities and Exchange Commission, which is federal agency responsible for regulating securities of markets and different exchanges. It's aim is to protect investors and maintain a mutual relationship between brokers and dealers, investment advisors, and investors to ensure transparency, fairness, and efficiency in the market.

So in case BTC is approve from such a legit and authentic institution, which solo aim is to avoid fraud and make the exchanges reliable, of ofcourse BTC legmitacy will increases. A crypto market will become a legit and trusted market, such as Forex or stock market.

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The introduction of a Bitcoin ETF will affect the overall market dynamics of cryptocurrencies. All the altcoins will get effected directly or indirectly, including STEEM too. Here the perception of investors does matter, the perceptions of risk and return. They might allocate their funds differently between traditional assets (like the ETF) and digital assets (like STEEM).

I think as far the governance mechanism of STEEM Blockchain, I don't know it will get effected. Steem is a decentralized Blockchain and it has its own principles, rules and regulations and working mechanism. I don't think so Bitcoin ETF has some direct relation with the governance system of STEEM. The production system of STEEM is quite unique in all Cryptocurrencies. It's the only decentralized Blockchain that gives Steem as a reward to the content creator.

Yeah with Bitcoin ETF the crypto currencies may get effected, they may modified their Blockchain system little bit, but no one knows it's must. The same we don't know about STEEM too, if they are modifying their governance system with BTC ETF or not.

This is all about my blog for today, hope you guys have enjoyed reading it. See you soon with a new amazing and interesting topic, till take care.