I feel like we’ve been bombarded with news and rumors about the upcoming Bitcoin ETF but some people may not know what an ETF actually is.
I certainly didn’t. I had to look it up.
ETF is short for Exchange Traded Funds, and an ETF is a financial tool that puts together different assets.
An ETF passively replicates the performance of indices by pooling funds from various investors.
These days traditional ETFs perhaps make less sense because access to the stock market is easier, but back when it was first launched, in 1993, the first ETF replicated the S&P500, giving a wider audience access to one of the world’s best-performing assets.
The point of a Bitcoin ETF is that traditional financial players can’t, or won’t, buy Bitcoin directly.
But they do own and invest in ETFs all the time.
Put simply, the teller or director of your bank might invest in Bitcoin directly, but your bank won’t.
With an ETF, it’d be the other way around.
Your bank teller and director will probably ignore it, but your bank might consider it.
Why is it a big deal?
Because your bank teller may buy $100 or $1,000 worth of BTC. Your bank director may buy $10,000 worth of BTC.
But with a Bitcoin ETF? Your bank might buy $1 million or $10 million or $100 million worth of BTC.
In short, the crypto world thinks the Bitcoin ETF is a big deal because, surprise surprise, we hope it’ll drive the price up.
bitcoinea 
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