In Bitcoin, ATH stands for All Time Highest which refers to the highest price of bitcoin in other words: the Market Cap for a cryptocurrency has reached a higher level since its listing or inception. Several times ATH is quoted as the global financial asset as ATH represents the theoretical potential of Bitcoin.
On 20th October of 2021 Bitcoin once again reached a new ATH after a long gap of six months, at this time we can see that the price of Bitcoin is over $66.900. Our analysts are still bullish on bitcoin and are even thinking of an $80.000 reached before the end of 2021. In this present week, we saw an approvement of the very first much-awaited Bitcoin ETF by the US Securities and the Exchange Commission. The new strategy was released on October 19 which is very successful as on its inaugural day it raised over one billion dollars. With this huge ATH, there is ease for the approval of the next Bitcoin ETFs.
Seemingly, two more Bitcoin ETFs have already been approved by the SEC. It shows that the second Bitcoin ETF would be introduced to the nation as the Valkyrie Bitcoin Strategy Fund (BTF). This tool also has been fixed to the futures of Bitcoin and it will be trading on Nasdaq from Friday (October 22, 2021).
The third approval is for the launch of the VanEck and its strategy of Bitcoin ETF (XBTF). The ETF was approved for its launching on 23rd October. Due to Saturday, the whole process of trading will start from 25th October that is Monday.
The ETF is the funds that are actively managed and are exchange-traded. The purpose of ETF is to achieve its objectives of investment by investing, under the normal conditions, in systemized, futures contracts of Bitcoin on the cash-settled for the trade on community exchanges that are registered with the Commodity Futures Trading Commission (CFTC).
The Bitcoin ETF mocks the actual price of digital currency, allowing its investors to invest and buy into the ETFs without bitcoin trading. By investing in the Bitcoin ETF, the issues of complex storage and the procedures required for the investors of cryptocurrency are removed.
ETF is the kind of investment vehicle that tracks the working and the performance of a specific asset or a group of assets. ETFs also allow their investors to bring variety to their investments without owning the assets by themselves. The individuals that are only focusing on gain and loss also have the knowledge that ETFs are providing the simplest alternative to selling and buying individual assets.
Why people should invest in ETFs?
The ETFs that are related to Bitcoin can investors a new way to involve in the very fast-growing cryptocurrency field. The price of Bitcoin has been doubled up in the present year and the number of investors is growing. As ETFs provide security and the investors do not have to bother with the security issues and different security procedures that are related to the holding of the bitcoin and other cryptocurrencies. Also, the investors do not have to deal with the process of a cryptocurrency exchange. Investors can easily sell and buy the ETF through traditional markets and exchanges. ETFs are easy to understand in the investment world as compared to cryptocurrencies. ETFs are now becoming day by day popular as tokens and digital coins. The investor who is looking to invest in digital currency can also focus on the trading vehicle instead of learning ins and outs of something complicated. When the ETFs are compared with other traditional mutual funds that price up only once a day, the investors can sell or buy the ETFs all over the trading day. This process is important for cryptocurrencies whose prices sharply swing from minute to minute. The SEC has also opened the Bitcoin ETF application to public comments.
How Much Will It Cost?
The expense rate will be 0.95%. This will mean there is $95 for every $10,000 invested by the investor in the fund.