Bitcoin just became ‘more mainstream’ with U.S. ETF approval. What to know

globalnews.ca:

The U.S. Securities and Exchange Commission (SEC) approval of 11 exchange-traded funds (ETFs) that hold Bitcoin on Wednesday is being called an “unprecedented” decision by analysts — one that they say will expand how many people can gain exposure to the cryptocurrency.

The decision meant the ETFs, which included BlackRock’s iShares Bitcoin Trust and Valkyrie Bitcoin Fund, could begin trading Thursday and would likely kick off fierce competition for market share.

Toronto-based Purpose Investments’ chief investment officer Greg Taylor noted that while Bitcoin ETFs have been in Canada for some time — Purpose introduced the world’s first in 2021 — the approval in the U.S. will make it easier for people who want to get exposure to the cryptocurrency, which he said can be tricky to do on your own.

He said having the cryptocurrency on an exchange with regulatory oversight makes its “simpler” for investors.

“I think this is a way better way for investors to get exposure to crypto,” he said in an interview with Global News.

An ETF is a way for people to invest into an asset or collection of assets, like gold, oil or now Bitcoin, without having to actually own the product and can be traded like you would with shares, meaning you can buy and sell them throughout the day.

With Bitcoin trading just below US$47,000 Thursday, ETFs track that price and then gives smaller investors a way into the cryptocurrency.

ETFs aren’t new. Gold ETFs have been around for about 20 years and managing director of Ninepoint Partners digital asset group, Alex Tapscott, said they opened up a whole new market of people who could invest in gold without having to put a gold bar in a security deposit box.

Tapscott went on to say the SEC’s decision may be more