Cryptocurrencies debuted on Wall Street, where the BITCOIN buy and sell platform; COINBASE gave the bell in the NASDAQ index, associating its price with the value of the world’s largest digital currency, which is none other than BITCOIN.
To continue with the narrative of such a great feat, it is important to know that COINBASE is, which represents a classic broker that works in a similar way to the capital market by supply and demand, which after trading or buying digital currencies stores them in a digital wallet and after each cryptocurrency transaction you receive a fee.
Cryptocurrencies have exploded so much that their total value has reached almost $ 2.5 trillion, competing with the world’s most valuable company, Apple, and they have reached more than 200 million users. At that size, it is simply too big for the financial establishment to overlook.
Cryptocurrencies are on Wall Street and everybody wants to invest
The richest companies in the world are putting more and more of their fortunes into cryptocurrencies. High-risk hedge funds are already trading bitcoin on wealth matrix, well-known banks start offering related services in cryptocurrencies.
The New York Stock Exchange closes 2021 with around 3 BTC ETFs. In addition, 2021 has been a year where bitcoin has had great news that has impacted chiefly the price it currently owns, as is the case thanks to the trust it has generated in its users.
Such as Coinbase, which launched the first crypto asset in the financial heart of the world, an achievement that took more than seven years to achieve from the moment BITCOIN went on the digital market as a leader in cryptocurrencies.
The winners in all of this are exchanges, asset managers, and custodians. Whether investors win or not is a big question mark. On the other hand, many wonder if cryptocurrencies are nothing more than a fad, they consume too much energy and it is here when all the harsh regulatory scrutiny that weighs on them begins to be pointed out.
Since the US Securities and Exchange Commission announced that it was going to approve the creation of the ETF, the price of bitcoin has not stopped rising above the US $ 61,000, approaching its all-time high of US $ 65,000 in April of this year.
ETF is the denomination of the crypto assets in the stock market
The ETF will not invest directly in bitcoins, but rather in futures contracts linked to the cryptocurrency. In ETFs, investors can buy and sell parts of the fund at any time, unlike other classic instruments of this type that have temporary entry and exit windows.
ETFs have grown exponentially over 20 years and are valued at more than $ 5 trillion in the EE.UU, representing 70% of the global market for these funds.
The frequent volatility that bitcoin has is not something that worries its users much, we have witnessed that the price of bitcoin has behaved like a roller coaster so far in 2021 because although it has reached historical highs, it has also it has been negotiated below the US $ 30,000.
Like other investment funds, exchange-traded funds can invest in a wide range of assets that, at times, would be difficult to access to investors, especially retailers, such as indices, commodities, and emerging markets.
To this must be added that its listing on secondary markets allows investors accustomed to operating in the markets, buying and selling similarly as it is done with other listed assets.
One particularity of these funds is that their objective is to replicate the behavior of a certain benchmark index.
Conclusion
If there is something more volatile than bitcoin, it is bitcoin futures, the uncertainty of knowing how it will behave.
The market launch of BITO, the denomination that BITCOIN was given to be listed in Wall Street, comes after a 20-day rally in which Bitcoin accumulates an increase of almost 60%, after spending just over the US $ 40,000 last 29 from September to the almost US $ 65,000 on the day of its debut on the stock market, according to data from the Traidingview portal.
Both the crypto community and Wall Street investors were waiting for a Bitcoin ETF to go to market, as regulatory approval allowed digital currencies to reach more mainstream investors to deposit their investments in digital gold.
BITO will allow many people who have been waiting for an easy way to invest in Bitcoin to be able to do it now in a solid way, managing to involve them and most importantly have it in their wallets.
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