What is a Bitcoin ETF?
A Bitcoin ETF, which stands for Exchange Traded Fund linked to Bitcoin, is an investment tool that tracks the price of Bitcoin and allows investors to trade the fund's shares on traditional exchanges.
Who Should Not Buy Bitcoin ETF
- Ordinary People
- Cryptocurrency Investors
- Small Businesses
- People in Countries with Weak Economic Situations
Who Should Invest in Bitcoin ETF: Key Segments
- Experienced Stock Market Investors
- Pension Funds and Foundations
- Asset Managers
- Venture Capital and Private Equity
Bitcoin ETF may be a suitable investment tool for certain segments, but for ordinary investors and those who prefer direct investments in cryptocurrencies, this method of investing can represent significant risk. One of the main reasons is that the cryptocurrency keys are held by the ETF fund managers, which eliminates some of the key benefits of cryptocurrencies, such as anonymity, security, and actual asset ownership. Investing through Bitcoin ETFs can therefore lead to increased risk exposure.
The argument that Bitcoin ETF is regulated and therefore safe should be taken with caution. History has shown that regulation in itself is not a guarantee of safety. In fact, regulation can primarily mean taxation and the absence of real ownership, only with the promise of paying out the value from the fund.
Another common argument in favor of Bitcoin ETFs, that cryptocurrencies will be safely stored, also needs to be questioned. With my professional background in IT security, I can confirm that no system is 100% secure. A large amount of BTC stored in one company can attract hackers who invest their time in finding security weaknesses. Unfortunately, in the world of IT, there is no such thing as absolute security, and the accumulation of a large amount of cryptocurrencies in one place only increases the risk of targeted attacks.
Another argument often cited in favor of Bitcoin ETFs is their convenience. However, in today's era, when access to information is easier than ever and the internet is full of useful guides, this argument is somewhat outdated. The current digital era offers abundant resources that facilitate the safe purchase and management of cryptocurrencies. Anyone who can read this text should be able to independently purchase cryptocurrencies and set up a secure wallet, all within 30 minutes. Do not buy Bitcoin ETF.