Benefits of a Bitcoin ETF

Benefits of a Bitcoin ETF

As of late, there have been lots of talks and excitement about the recent proposal by Cboe (Chicago Board Option Exchange) to the SEC (Security Exchange Commission) to launch the first Bitcoin ETF. Previously all Bitcoin ETF proposals have been denied, most recently was the request by Gemini Exchange owners the Winklevoss twins. The SEC sited that “Markets for Bitcoin tend to be unregulated overseas and that leaves the potential for price manipulation”. Which I fully agree with; if we are being fully honest, we have to come to grips there is some level of manipulation in the crypto markets. This becomes very evident when reviewing the order books of certain exchanges. However, price manipulation and securities fraud exists in traditional markets as well and many individuals have gone to prison for this Bernie Madoff, Jordan Belfort (wolf of Wall Street), and Enron…etc.

Since then the Crypto Markets have had a chance to mature and become an attractive safer investment vehicle for traditional and institutional investors. One of the biggest fears of “Big Money” investors is the security involved around managing crypto currencies and the many hacks involved on some of the biggest exchanges (Mt. Gox, Bitfinex, Bitgrail, and more). Exchanges have definitely stepped their game up on offering superb security to their investors, time and time again exchanges like Binance have been a step ahead their hackers and have thwarted all hacking attempts “Funds are safe!”.

Coinbase also launched their custody service which allows for secured holding of their clients crypto assets.

“A custody offering through a regulated, institutional broker-dealer
Coinbase Custody leverages the expertise and systems of our partner Electronic Transaction Clearing (ETC). ETC is a SEC-registered broker-dealer and FINRA member subject to regulated financial reporting and independent audits.
What’s coming next
Coinbase Custody provides secure storage of crypto assets for institutions in both the US and Europe. Before the end of the year, we hope to bring this offering to Asia as well.
Additionally, over the coming months, pending regulatory notifications, we’ll be focused on building the features and services that our institutional clients want.

1. Support for more crypto assets
   Coinbase Custody currently supports BTC, ETH, LTC and BCH. We plan to continue adding support for new assets and will offer regular updates.
2. Flexible access to funds
   On top of Coinbase Custody’s cold storage, we will add secure, segregated hot wallets and scheduled withdrawals for maximum flexibility.
3. Crypto-first features
   Longer-term, we’re already thinking about how to securely enable our clients to participate in the crypto ecosystem through proof of stake and distributed governance. We look forward to partnering with our clients to bring these features to market.
   As crypto continues its maturation as an asset class and more institutions enter the space, Coinbase is committed to delivering products and services that are tailored to their unique needs. Coinbase Custody delivers the trusted storage service that our clients need to fully immerse themselves in the potential that crypto assets provide. We look forward to delivering more offerings over the coming months.
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   With all of that being said, an approval for a bitcoin ETF will be huge for the crypto markets, this will allow for exposure to trillions of dollars of institutional liquidity. For months intuitions have been banging on the crypto door trying to get in, unfortunately there has been no viable outlet for them to do so. Intuitions have been studying bitcoin for some time and are fully aware of its potential and many use cases. Bitcoin and other crypto currencies decentralized nature allows for a true global economy and a possibly the ultimate hedge against traditional markets.The approval of a bitcoin ETF allows for retirement funds to include crypto assets as part of their plan, and this my friend is a hundred trillion plus market!

If you are interested in getting into crypto currencies you can sign up to Coinbase using my affiliate link. Sign up with $100 and we both get 10 bucks for free!