How Does ETF News Affect Bitcoin?

After the ProShares ETF approval, the price of Bitcoin rose to around $66,800. After ProShares' ETF traded, Valkrie's was the second ETF traded. Valkyrie Bitcoin Strategy ETF has started trading under the code BTF.

It was originally planned to be traded using the BTFD code, but then the company's plan changed. Because this is used by Bitcoin investors to mean “buy from the bottom” and the company thinks that this will not be the right label for the ETF.
The launch of ProShares' ETF has been successful and has been particularly positive for Bitcoin and Ethereum. However, the same cannot be said for the Valkyrie ETF for now. The Valkyrie ETF started trading at $25.52 and was down approximately 3.3% to as low as $24.66. In addition, the price of Bitcoin dropped to around $ 61,000.

An investor who buys a Bitcoin ETF does not care whether the private key of the wallet is his or her own. Because the asset they actually bought acts as a kind of stock. ETFs also offer diversification to investors. An investor who buys a Bitcoin ETF can simultaneously buy the stock of the Amazon firm. This is completely optional and facilitates diversification of investment.

The Bitcoin ETF has a protective role in price drops. However, when Bitcoin is bullish, the Bitcoin ETF may not increase at the same rate. In short, the investor who buys a Bitcoin ETF earns less than an investor who holds Bitcoin in his cold wallet or on the exchange.

The ETF that the investor buys is not a cryptocurrency. Therefore, the inability to exchange Bitcoin with other cryptocurrencies is also a disadvantage.

ETF approval is considered extremely important, especially as it will increase the interest of institutional investors in the crypto market. Accordingly, as institutional investors increase demand for Bitcoin Futures products, the issuer will have to increase the amount of physical Bitcoin in its portfolio to support this demand.

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