Well, it's not an ETF, but it sure is close...
In a report out this morning, it was revealed that Germany will soon be launching a physically backed Bitcoin ETC.
And should be tradable as soon as this week!
The official announcement can be seen here:
(Source: https://cryptopotato.com/physically-backed-bitcoin-etc-to-launch-in-germany-with-regulator-approval/)
While this isn't technically an ETF, it sure is close...
The way these financial instruments are structured are slightly different but the end result is a physically backed bitcoin investment vehicle that will be available to investors directly from their fully regulated brokerage accounts.
Which is more or less the entire point of having a bitcoin ETF, not having to venture out to an unregulated crypto exchange.
Some of the main differences between an ETF and ETC can be seen here:
(Source: https://www.investopedia.com/articles/investing/032116/how-etc-different-etf-iau.asp)
This is a step in the right direction...
As more and more of these types of products start popping up all over the world the more likely we see one here in the US.
The US can look at these products to see if their concerns are real or not as they will provide a real world test case.
The most important thing is that these products continue to be physically backed.
A cash settled product is of little interest to me or most in the crypto market that would like to see demand increase in the spot markets.
The good news is that many of the creators of these products understand that and are continually pushing to get physically backed and physically settled products approved.
Stay informed my friends.
-Doc
I think products like these are good for the industry. I know they tend to bring about controversy, but I'm optimistic that at the very least, they serve to solidify the "branding" of crypto
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They are what is needed for the really big money to enter. Plus all the mom and pop investors that just want exposure to bitcoin in their traditional brokerage account.
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What do you mean?
what do they mean by "physically backed" bitcoins??
I was chuffed when I read the news. As you say, its not an ETF, but it's definitely a step in the right direction. Not only is this a form of recognition for what cryptocurrencies can do, but it's one more step closer towards getting into mass adoption. People will follow where the big money is being dumped at, and if we can get mainstream investors into Bitcoin, then we're only a few points behind getting ordinary folk to start paying attention, too :-)