Tim Heath: Bitcoin is not CryptoBack to news
I’ve received some interesting questions and comments following my most recent LinkedIn post, so thought I’d unpack my argument a little further here.
This week, Grayscale appeals against the SEC’s decision to deny its application to launch a Bitcoin-based “spot” Exchange Traded Fund (ETF). ETFs represent an easy way to invest in multiple assets concurrently without actually holding the assets in question.
A Bitcoin spot ETF would invest in Bitcoin at its current market (or ‘spot’ price), allowing investors to hold the cryptocurrency within the fund just like they would a stock. This would allow users to benefit from rises in the Bitcoin price without having to go through the effort of buying Bitcoin, which for the most part involves signing up to an exchange — whose reputations presently precede them, shall we say — and going through multiple verification processes.