A Debate Between Legitimacy and Investment Purism Over the Bitcoin Exchange-Traded Fund

The cryptocurrency industry has been circling the SEC's suggestion of Bitcoin ETFs. It has provoked a mix of hope and doubt.

Crypto bank Sygnum Singapore co-founder and CEO Gerald Goh is optimistic. Goh considers SEC certification a sign of Bitcoin's validity. In an interview, the official said it allows institutional actors to adopt crypto, potentially mainstreaming it.

“Shark Tank” star Kevin O'Leary is displeased. O'Leary, a Bitcoin purist, rejected ETFs in a Fox Business interview. ETF fees are pointless to long-term Bitcoin holders like him, he said.

ETPs provide a variety of benefits to investors who want to put their money into Bitcoin as an investment. But there are some negatives to it. Traditional investors who do not manage wallets can easily have access to exchange-traded funds (ETFs).

A higher level of legitimacy has been achieved, which opens the door to the possibility of a wider market involvement. Bitcoin Exchange-Traded Funds (ETFs) do not have to actively handle the king currency.

In addition to this, they make it possible to include them into diverse portfolios while maintaining market control. As a natural consequence, it provides a feeling of safety for some buyers and sellers.

Furthermore, due to the nature of the fund, it is possible that the fund does not provide an exact tracking of the price of Bitcoin. As a result of this diversity in structure, eleven of the Bitcoin exchange-traded funds (ETFs) that have been licensed are seeing varying amounts of money flow and assets under management (AUM).

For Bitcoin purists, exchange-traded funds (ETFs) might not quite imply holding the cryptocurrency itself. Bitcoin is the product in question here. As a result, the independence that comes with a decentralized system is eclipsed by the security that comes with standard financial goods.

This move was interpreted by him as a transient kind of sale pressure, and he maintained his positive outlook on the long-term prospects, forecasting that the value of Bitcoin will surpass $200,000. It has been his recommendation to investors that they "buy the dip."

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