Over the past year, there has been a massive boom in cryptocurrencies.
Bitcoin’s value has multiplied over the past year. But Bitcoin is not like a normal financial instrument. There’s no central authority.Â
Tech entrepreneurs like Twitter’s Jack Dorsey and Tesla’s Elon Musk are major proponents of Bitcoin.
They feel it will eventually gain mainstream acceptance and change the way society works. This of course will make the various currencies skyrocket in value.
Musk even spent $1.5 billion purchasing Bitcoin. Some analysts warn there is too much speculation, however. The tremendous volatility has scared off major investors for now.Â
Mainstream investors have been clamoring to be able to buy and sell Bitcoin. Up until now, bitcoin has been very difficult to trade.
This is because of technical and security reasons. Transaction costs were also high.
Recently, however, a Bitcoin ETF has debuted which will allow easier buying and selling.Â
Purpose Bitcoin ETF is the first of its kind in North America. The issuer is Purpose Investments of Toronto.
It was a massive success on its first day of trading, with shares worth $165 million trading hands.
This is well above average for an ETF of this size. Bitcoin trusts in the United States trade at huge premiums.
Hopefully, this ETF will trade without this distortion of value because it hurts investors.Â
Some competitors in the US are trying to launch rival Bitcoin ETFs. In particular, VanEck Associates and Bitwise Asset Management are making efforts to but they are getting push back from regulators.
Bitcoin is infamous for its huge price swings and alleged insider manipulation. Regulators are still weighing the risks.Â
Purpose Bitcoin ETF allows everyday investors to easily trade Bitcoin from their brokerage account. The volatility could be very profitable to some investors.Â
