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One might be wondering why people are embracing Bitcoin ETF than bitcoin itself, and perhaps why the dreaded Securities and Exchange Commission(SEC) approved Bitcoin ETF. You may also ponder on why most cryptocurrency experts and analysts are not bullish about the trending Bitcoin ETF, why not walk with me down this journey as we unravel certain things about Bitcoin ETF ( Exchange Traded Funds).


*What is Bitcoin ETF and why was it introduced to the cryptocurrency market?* 

Bitcoin ETF mimics the price of Bitcoin, allowing interested investors to buy into the ETF without trading bitcoin itself. The road towards ETF approval dated back to 2017 when Tyler Winklevoss first submitted a petition for Bitcoin ETF approval but was turned down by the Securities and Exchange Commission (SEC)that same year. The fight for Bitcoin ETF continued until October 19 2021 when the first Bitcoin ETF traded in the US. 

Most cryptocurrency experts and analysts have publicly expressed their stand against Bitcoin ETF, but it is surprising to see the rate at which people throw funds into it. One may be pondering on this question, " *why invest in something that mimics the price of an asset when you can invest in the asset itself"*, well there could be many reasons for this which can be the motivating factors for people investing in Bitcoin ETF. The fact remains that every individual is entitled to his or her own opinion.

*Below are four possible reasons why people prefer investing in Bitcoin ETF against Bitcoin itself.*

 *Storage*: For those who have been into cryptocurrency for a long time, you will agree with me that storing crypto assets has not been easy. Whether you are using centralized wallets or decentralized wallets, you will likely have issues with storing your crypto assets. It can be that the centralized exchange you held your cryptocurrency assets was hacked and your funds are stolen or that you lost or exposed the private keys to your centralized wallets. 

Bearing this in mind, some investors will thus prefer to invest in ETF where there will be nothing like private keys or wallets to take care of. The transaction and proof of ownership are recorded in the blockchain. Investors are thus confident with Bitcoin ETF than bitcoin itself. 

*Bitcoin ETF is environmentally friendly*:  

Recall that the cryptocurrency market experienced a heavy dip some months ago when China cracked down on Bitcoin miners because of the negative environmental impact of bitcoin mining. Although green energy has been developed for bitcoin mining, there is still high energy consumption and waste coming from Bitcoin mining. 
Green scientists and other lovers of nature will likely prefer to have Bitcoin ETF because of its nature. They believe that investing in an eco-friendly asset is one of the ways to save mother nature. 


*Bitcoin ETF is acceptable legally*.

Most investors are trading Bitcoin and other cryptocurrencies with caution especially for places where cryptocurrency is not legal. With Bitcoin ETF, there seems to be a level of support from regulators. Also, people can be able to trade Bitcoin ETF in traditional Markets without any risk of legal action on them. 

Finally, some investors are more confident investing with a reputable brand than trusting in their strength, some who are not tech-savvy will not want to risk everything trying to do things on their own. 

In conclusion, Bitcoin ETF might appear to be more secured than bitcoin itself when it comes to storage and trading but this doesn't mean that there are no security concerns with Bitcoin ETF.  Companies that offer Bitcoin ETF can be liquidated and investors are likely going to lose money from it.  Presently, it appears to be a game for the rich. 

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