One thing some people love about Bitcoin is the constant action, and the recent days have not disappointed in the slightest. After the recent news announcing the USA is now the world’s #1 Bitcoin Mining Country, even more positive Bitcoin-related developments are coming out. On October 15th, 2021, Bitcoin surged above $60,000 USD for the first time since April of 2021 partly thanks to bullish news announcing that ProShares has filed documents with the SEC to list their Bitcoin Futures ETF– the first of its kind- in the USA some time during the week of October 18th, 2021, with trading set to begin potentially the same week.
While ProShares may be the first company to launch a Bitcoin Futures ETF, or Exchange Traded Fund, you can bet they won’t be the last financial services firm to try their hand at profiting off of Bitcoin. In fact, based on more paperwork filed with the SEC, other financial services firms like Invesco, Valkyrie, and several others, are following ProShares closely with plans to launch Bitcoin-linked ETF Products of their own in the near future.
Also, rumors are abound that state Grayscale may attempt to launch a Bitcoin ETF of some sort in the months ahead- however no concrete announcements from Grayscale are available at the time this article is being published.
The First New Bitcoin Futures ETF Is Set To Begin Trading In USA The Week Of October 18th, 2021… Is This A Good Thing?
Overall, it seems a Bitcoin Futures ETF being approved in the USA is certainly a positive development for Bitcoin, because an ETF product may help to draw more traditional investors in to the world of Bitcoin, particularly those who are not comfortable directly purchasing BTC for a variety of reasons.
While a Bitcoin Futures ETF is still a step in the right direction when it comes to mainstream bitcoin adoption, it is important to understand that a Bitcoin Futures ETF won’t directly correlate with the market price of Bitcoin, and the type of ETF that does correlate with Bitcoin’s market price, known as a “spot” ETF, is still facing opposition from the SEC. However, given the news about an impending launch of a Bitcoin Futures ETF- which was once thought impossible by some- it would not be shocking to see a Bitcoin Spot ETF launch some time in the near future for trading in the USA.
Presumably, one positive aspect of a Bitcoin ETF is that these assets could be purchased by retail investors and/or ordinary folks investing through their 401k or IRA accounts- which may help people deploy capital towards the bitcoin cause they otherwise could not have. However, in theory, it is important to understand there is very little probability a Bitcoin Futures ETF will ever produce a return on investment (ROI) to match direct Bitcoin holdings.
One other thing that is not ideal about a Bitcoin Futures ETF is that these funds won’t hold BTC or invest in BTC directly, and will rather trade Bitcoin Futures Contracts and possibly shares of institutions and corporations that own Bitcoin. Importantly, while a Bitcoin Futures ETF may help to create positive momentum for Bitcoin adoption amongst the general public- investors should understand that they are not personally owning any Bitcoin whatsoever when buying one of the new Bitcoin Futures ETF products set to start trading soon.
However, at the same time as some people are cheering the news of a Bitcoin ETF hitting the market, some Bitcoin advocates will suggest that having a Bitcoin ETF product could be harmful because it could help to bring more institutions in to the bitcoin space before a majority of the general population, only increasing inequality.
Importantly, people should understand that the SEC has not officially “approved” the Bitcoin Futures ETF product from ProShares BUT the US Securities and Exchange Commission has also signaled that they WILL NOT oppose the product. In fact, some experts believe the SEC may never formally rule on the matter- or at least won’t do so until if/when more regulations are implemented. For now, it does appear trading will commence for the world’s first Bitcoin Futures ETF the week of October 18th, 2021, in the USA, pending any last minute regulatory action from the Securities and Exchange Commission or Chairman Gary Gensler.
A Bitcoin Futures ETF being allowed to trade on stock exchanges in the USA is a gigantic development because, in the past, the SEC has rejected any attempts made by companies hoping to register Bitcoin or Crypto Related ETF Products, mostly under the guise of “protecting investors.” However, under US Federal Law, while no securities product can trade if it is specifically rejected or banned by the SEC, there is a loophole available that states the SEC does not have to officially approve a product for a product to be traded and they can essentially just allow a product to begin trading without being ruled upon. Hence, by taking no official stance this time around, it appears the SEC is going to allow the world’s first listing of a Bitcoin Futures ETF to take place in the USA starting as early as October 18th, 2021, while still allowing themselves the opportunity to put the proverbial hammer down later on if/when they decide to implement harmful regulations (which hopefully won’t happen, but never say never). Given the continued flow of money and the continued institutional interest Bitcoin continues to generate- it seems possible some people are finally starting to realize the reality that Bitcoin quite possibly really is the future of money…and some people wisely want to ensure they’re set up to thrive in a Bitcoin-first future.
Is Owning Shares Of A Bitcoin Futures ETF The Same As Owning Bitcoin Directly?
It is very important for individuals to understand how Bitcoin works, and it’s certainly not the easiest concept for everyone to grasp at first. For the average person, it’s not easy to get a grasp of Bitcoin even after reading “The Bitcoin White Paper,” written by Satoshi Nakamoto, the pseudonymous creator of Bitcoin. However, since Bitcoin truly is for everyone- the hope is that everyone can eventually own some portion for themselves of the 21 Million Bitcoin that will ever exist.
If someone thinks they are “investing in bitcoin” or “own bitcoin” after buying shares of a Bitcoin Futures ETF- this is not correct and it is hoped the ETF purveyors will clearly make this distinction for the public to understand fully whether a Bitcoin ETF or buying Bitcoin directly is the best choice.
You only own bitcoin when you buy bitcoin or mine bitcoin and have direct access to your sats/BTC holdings stored in your own wallet. Some people are hesitant to even buy Bitcoin off of crypto exchanges, despite that you still have access to your holdings and can transfer to cold storage rather easily. Some people exclusively accumulate bitcoin by mining bitcoin, which is a great method. However, some people may prefer to dip their proverbial toes in to the figurative water first when it comes to bitcoin…and that’s where the Bitcoin Futures ETF product could really shine.
While the Bitcoin Futures ETF could get immense interest, it still seems very likely to assume all of the true hodlers will keep mining bitcoin and/or buying bitcoin and stacking sats as per usual.
For those who are new to the world of Bitcoin- the thought of a Bitcoin Futures ETF may be a comforting one, but just don’t be misled to believe you are a bitcoin owner after buying shares of an ETF.
As the popular saying goes in the world of Bitcoin, “not your keys, not your coins.”
Bitcoin Prices Are Nearing All-Time-Highs, Skyrocketing Above $60,000 USD For The First Time Since April Of 2021. If Not Interested In A Bitcoin Futures ETF…Is Right Now A Good Time To Start Mining Bitcoin OR Buying Bitcoin?
Certainly, it’s all about perspective when it comes to just about everything in life- bitcoin included. Depending how long you’ve been around Bitcoin, you may even remember the days when most people thought Bitcoin would never surpass $1,000 USD in value. Basically, if you’re trying to “time the market” or are waiting for Bitcoin’s price to drop by a significant amount so you can buy…you may get lucky, or you may never see a time as good as right now to enter the market. Heck- everyone in 2021 wishes they bought Bitcoin in 2011, right? If things continue on the same, and you were to start mining or buying Bitcoin now- do you think your 2025 Bitcoin holdings will be worth more than your 2021 stack? How about your Bitcoin holdings in 2031, and on, and on? When you think long-term, it almost always seems like a good time to accumulate more Bitcoin (or at least that’s how many Bitcoin hodlers feel).
Given the “dollar cost averaging” or “DCA” tactic’s popularity in investing circles, Bitcoin circles included, it is important for those seeking to start stacking sats to understand that bitcoin mining is a great way to DCA while accumulating bitcoin because you continually gain more BTC at various price levels in a way which you cannot do when buying unless you’re a professional trader working 24/7 to watch the price charts and execute trades.
Nonetheless, for those looking to “trade” Bitcoin, “short” bitcoin, or looking to take on leverage/debt to buy Bitcoin and quickly sell it in hopes of turning profits- often results are not ideal and this is why Bitcoin is best viewed as a long-term investment in the eyes of most serious holders and also why many investors around the bitcoin space post “only invest what you can invest to lose” sort of mantras repeatedly. While nobody is trying to scare anyone from buying bitcoin or mining bitcoin, in fact it’s usually the opposite intent, it is important for anyone holding bitcoin to understand that BTC is a volatile asset and it’s not a “get rich quick” sort of endeavor for most.
As we sit here today, many of the same people who have said Bitcoin could never surpass prices of $1,000 USD or $10,000 USD are also calling this “the bitcoin peak,” and bearish individuals are hoping to be proven right. However, all available data out there in the world today seems to indicate that the people who are essentially of the general belief Bitcoin will continue to increase in value may be much more likely to be proven right over time.
When it comes to your personal preferences, ask yourself whether you are willing to miss out on a once-in-a-lifetime innovation like Bitcoin. Simply put- that’s a decision you ought to make on your own and should do so with some strong thought. Don’t let your decisions be made by “crypto influencers” from social media sites like Twitter, Youtube, Reddit, and TikTok, but rather do your best to gather the most accurate information from those sources and from the rest of the world. Certainly, among the many fantastic resources out there for learning about Bitcoin, the MinedPool Technologies website and blog are hopefully in your repertoire.
While nothing in this educational article is intended to be used as any sort of financial advice… the information provided herein may help you to do your own research while you seek to decide whether or not right now is a good time for you to start mining bitcoin or buying bitcoin.
When you ask “is it too late to start mining bitcoin or buying bitcoin? You can likely go on to learn more about bitcoin and bitcoin mining, and then may decide there are at least 3 or more reasons why it’s definitely not too late for you to start mining bitcoin (and/or buying bitcoin). You might want to learn more about how to start mining bitcoin. You may want to learn more about a bitcoin mining pool and hosting provider like MinedPool Technologies, for example. Heck, you may even decide you want to pass on the Bitcoin Futures ETF thing altogether and instead may decide to become a bitcoin miner...and nobody will judge you if you make that wise move.
You also may decide Bitcoin is not right for you, and that’s perfectly fine…but chances are good your time to join the Bitcoin world will come. For your benefit, bitcoin lovers worldwide hope it’s simply a matter of when you start to stack sats, and not if.