The hype has been growing for over a year now, as crypto holders from all over the world anticipate the approval of bitcoin ETFs (Exchange-traded funds).
Bitcoin ETF rumours.
The spread of speculations and rumours is not new to the crypto space. But the ETF frenzy has been on a high in the past months. With many bitcoiners not understanding why. Today we look at what makes the Bitcoin ETF a hot topic.
Big names in the financial industry are playing.
Many big institutions and organizations express interest in having their own ETFs, which comes as no surprise. From a financial standpoint, it comes with a lot of financial benefits for institutional traders.
Bitcoin ETF creation types.
This is the real reason for the recent spike in community concern regarding the Bitcoin ETFs. Creation types refer to what means shares of the underlying asset in the ETF can be redeemed (withdrawn) or purchased (bought).
In-kind creation type.
This creation type means that participants can buy the underlying asset using the underlying asset itself. In this case, participants would be able to buy or redeem shares for the Bitcoin ETF using Bitcoin.
Cash creation type.
This creation type means that participants only use cash to buy or redeem the underlying asset. Participants will not be allowed to use bitcoin in the transaction of shares in the ETF.
ETF Approval speculations.
There has been a lot of speculation on the approval dates, but the most recent sources claim it is sooner than we all expected. January 10th 2024.
Conclusion.
In these times of uncertainty, you need reliable and timely news sources. Join us at Crypto University as we aim to educate the masses. Stay tuned to stay up-to-date and relevant in the crypto space.