Crypto Winter Thaws: The dawn of Bitcoin ETFs led by BlackRock

economictimes.indiatimes.com:

BlackRock, the world's preeminent asset manager with over $9 trillion in assets under management, has recently filed for a Bitcoin spot ETF. This move sent shockwaves across the financial world and prompted other industry giants like Fidelity, Invesco, Wisdom Tree, Bitwise and VanEck to follow suit.

The development is ironic considering BlackRock CEO Larry Fink dismissed Bitcoin as little more than an index for global money laundering in 2018. The market celebrated BlackRock's change of heart, propelling Bitcoin's value past the $35,000 mark, up 100% since the start of the year.

An Exchange-Traded Fund (ETF) is a versatile investment vehicle that has gained immense popularity among investors. Unlike a traditional stock, which gives you ownership in a single company such as TCS, Infosys, or Wipro, an ETF is a diversified collection of stocks or other assets.

Imagine a basket named TIW that holds shares from TCS, Infosys, and Wipro. This basket is then listed on a stock exchange like the NSE, making it accessible to the general investing public. The term «Exchange-Traded Fund» is derived from the fund's ability to be traded openly on an exchange, just like individual stocks.

Did you Know?

As a beginner to cryptocurrency investing, you should consider two critical things. First, you should determine and understand your risk tolerance, as cryptocurrencies can be volatile. Only invest what you can afford to lose. Secondly, don’t put all your funds in one cryptocurrency; diversify to mitigate risks. Deciding where to invest your hard-earned money can be difficult.

The beauty of an ETF lies in its simplicity and flexibility. When you invest in an ETF, you're essentially buying a share of a larger investment