Regulation of Cryptocurrency A significant concern for the cryptocurrency business is regulation, according to Jeffrey Wang, America’s director of Amber Group, a Canadian crypto-finance firm. “Clear regulation is something we would appreciate.” In September, China declared that all currency transactions were banned within the country’s borders, thereby putting a stop to any crypto-related operations. Meanwhile, Securities and Exchange Committee Chairman Gary Gaultier has made numerous comments on the role of both his agency and the Financial Services Authority in policing the industry. Approval of a Cryptocurrency ETF The first Bitcoin ETF just made its debut here on New York Stock Exchange, marking a big step forward in this area. This new development provides a more traditional approach to investing in cryptocurrencies. Investors can acquire cryptocurrencies directly via standard investment brokerages, such as Fidelity or Vanguard, using the BITO Bitcoin ETF (Exchange Traded Fund). “We do it in the stock market; researchers do that in the bond market,” Gensler said from the Colorado Security Forum this summer. However, some argue that the BITO ETF is insufficient since it does not own any digital currency, although tied to Bitcoin. Bitcoin futures contracts are what the fund does own instead of actual Bitcoin. However, while following overall crypto market movements, analysts suggest Bitcoin futures may not mirror the actual price of Bitcoin. For the time being, investors must keep their options open until an exchange-traded fund (ETF) directly owns Bitcoin. What is Crypto ETF Even though it’s too early to know how many traders will flock to BITO, the fund witnessed a lot of trading activity on its first day. For the most part, the more Americans can purchase into and influence the cryptocurrency market, the more readily available bitcoin assets will be in regular financial products. By using the same stockbroker with which you have a retirement account and other traditional investment accounts, you may add bitcoin to your portfolio instead of learning about cryptocurrency exchanges. The risk of a crypto ETF like BITO, on the other hand, is the same as with any other crypto asset. In other words, it’s still a risky and speculative investment. Don’t invest your money in a bitcoin fund if you want to risk it by buying crypto on an exchange. Think long and hard about whether or not you’re ready to take on the burden of owning cryptocurrencies. More Institutions are Adopting Cryptocurrencies The Prognosis for Bitcoin in the Future Considering that Bitcoin has the most significant market capitalization, it’s an excellent predictor of what will generally happen on the crypto market. After a rollercoaster journey in 2021, the bitcoin price has reached a new high for the second or third time this year. In April, the stock price reached a record high of $60,000 before plummeting to less than $30,000 in July. Experts advise investors to limit their initial cryptocurrency investment to less than 5% with their whole portfolio due to the high degree of volatility associated with the market. Crypto Investing for Dummies author Kiana Danial says that Bitcoin’s prior history may provide some insights. Danial claims that the price of Bitcoin has risen and fallen several times since 2011. “Bitcoin’s short-term volatility and long-term growth are what I expect.”
