What is ETF? Will Bitcoin ETF be Accepted?
Exchange Traded Funds (ETFs), known worldwide as the Exchange Traded Fund (ETF), are investment funds that are based on any index of investment products such as stocks, bonds and commodities and reflect this index performance to the investor.
The most important difference that distinguishes stock exchange mutual funds from other mutual funds is that they can be bought and sold in stock market like stock market.
Exchange Traded Funds (ETFs) can be bought and sold during trading hours from banks or authorized brokerage houses.
The ETF is a preferred investment fund because its cost is relatively low compared to other funds. It is possible to buy and sell for a long time because there is no limit in terms of maturity.
In addition, ETFs are subject to the credit guarantee of the stock exchanges in that country if they are accepted. In addition to lending, it is also possible to take short and long positions.
After well-known investors such as Warren Buffet turned to the Stock Exchange Mutual Funds, ETFs became popular in recent years. Especially in the US stock market, we can clearly see this.
The ETF is available through authorized banks and brokerage houses. many banks to fund sales in Turkey. It is sufficient to have an investment account in order to receive funding from banks that sell ETFs.
You can refer to stock exchange funds as stocks traded on the stock exchange. How are stocks bought and sold; stock exchange mutual funds can be bought and sold easily during trading hours. In this respect, stock exchange funds can easily be turned into money.
Exchange Traded Funds (ETFs) can be bought and sold in the same way as stocks within trading hours during the days when stock markets are open to trades.
Stock exchange mutual funds are popular all over the world and they continue to spread every day. One of the reasons investors prefer these funds is that the stock exchange mutual funds are in the category of products traded at a low cost.
The investors who receive the stock exchange fund can control and monitor which assets the stock exchange fund shares they receive are formed.
As long as investors purchase from authorized institutions, exchange traded funds such as other mutual funds are also safe because they are kept in Takasbank.
Net asset values of ETFs are displayed continuously in the indicator hours during the trading hours. In this context, investors are able to follow the changes in market conditions and stock prices and the rate at which the fund has affected its net asset value.
Recently, we have been well aware of the ETF concept with the Winklevoss twins applying to the SEC for the Bitcoin ETF. Even after the rejection of this application, there was a decrease in the price of bitcoin, and then the prices recovered within a few days.
In addition to this application, the CBOE (Chicago Board Options Exchange) stock exchange, which recently launched the Futures Bitcoin Transactions, has also applied for Bitcoin ETF and the process is still ongoing.
The CBOE application is considered to be accepted after the Winklevoss twins' application has been rejected. Because the reasons previously rejected are not found in the CBOE's application.
If the ETF is approved, there will be serious increases in the price of Bitcoin. It is estimated that institutional investors will have a serious influence on the market in case of approval, and that not all Bitcoin prices, but the entire crypto money market will experience serious increases.
Bitcoin ETF approval will allow investors afraid of cryptographic money markets to take a position where the risk of losing is not so high. Because these investors are at risk of losing just 0.5 percent of their portfolios.
As a result of this approval process, Bitcoin can become an important asset like gold all over the world.