Author: ARK 21Shares Bitcoin ETF ARKB, Translation: Golden Finance xiaozou
Bitcoin ETF is a breakthrough development that connects traditional financial markets with Bitcoin. We believe it will play a key role in legitimizing Bitcoin as a unique asset class.
Here are five reasons why Bitcoin ETFs are important:
1, Bitcoin ETF will be more cost-effective
Bitcoin ETFs avoid high institutional custody and execution costs and provide a highly cost-effective investment method. Bitcoin ETFs have lower execution costs than buying Bitcoin directly on an exchange (transaction costs can range from 0.5% to 4.5%). In addition, there are institutional custody costs of approximately 0.05%-0.25% for purchasing Bitcoin directly.
2, BitcoinETFMaking Bitcoin Easier
Bitcoin ETFs cater to those accustomed to traditional investment tools investors, making Bitcoin more accessible. Bitcoin ETFs simplify the Bitcoin investment process by removing the technical barriers associated with purchasing and custody of the underlying Bitcoin.
3, Bitcoin ETF supports seamless deposits
Bitcoin ETF is seamlessly integrated with existing financial tracks, making investment Investors can invest using their current brokerage account, thus avoiding the cumbersome deposit process associated with cryptocurrency exchanges.
4, BitcoinETFSubject to regulatory oversight
As a registered financial product, Bitcoin ETF provides additional security and trust. In addition, many institutional investors and investment funds are bound by regulations to invest only in registered products. As a regulated product, Bitcoin ETF opens the door to investing in Bitcoin for these investors.
5, BitcoinETFincreases the degree of freedom
Holding Bitcoin ETF gives investors a higher degree of freedom . Rather than holding Bitcoin directly, Bitcoin ETF investors can use Bitcoin ETFs as collateral for loans, incorporate investments into retirement accounts, and can more easily integrate Bitcoin investments into diversified funds and mixed-asset portfolios.