Bitcoin ETFs Will Boom…But Watch this BEFORE You Buy



The last time a bitcoin ETF was launched, the price of bitcoin jumped 82% in a month and it could do it again very soon. Bitcoin funds are coming and we could see a bitcoin futures ETF within the next month…but should you buy? Get up to $250 in free bitcoin when you open an account on BlockFi

There is no stopping the launch of a bitcoin ETF. There’s already one in Canada with the Purpose Bitcoin ETF (BTCC) and the demand in the U.S. is building. The SEC and Chair Gensler have been dragging their feet but recently gave the clear go-ahead for a bitcoin futures ETF. It’s not what bitcoin investors were hoping for but it is a start…but is it a good investment?

In this video, I’ll show you how bitcoin ETFs work and how a bitcoin futures fund is different. I’ll explain the pros and cons of ETF investing and whether you should invest in a bitcoin fund or the cryptocurrency itself.


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There have been more than 20 filings for a bitcoin ETF in the first eight months alone and new ones announced weekly. The government has delayed or denied every one so far but recent testimony opens the door for approval within the next few months.

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Pros of a bitcoin ETF are that it would open the investment up to millions of people still skeptical of crypto exchanges. It would also be a way to safely invest in bitcoin without having to store your own wallet or worry about a hack of your assets. The ETF provider would store all bitcoins in a cold storage wallet, safe from hacking or loss. A bitcoin ETF would also allow investors to buy bitcoin from any brokerage account and through a retirement portfolio.

Cons of a bitcoin ETF are the additional costs for management, as high as 1% annually in some cases. It also might not track the price of bitcoin perfectly in the case of a futures ETF or because of management error.

A bitcoin futures ETF would be different in that it wouldn’t hold bitcoin but would invest regularly in futures contracts on the CME. That will mean higher costs because the contracts have to be rolled over regularly. It will still affect the price of bitcoin though because the additional buying will bring arbitrageurs that will take the other side, selling bitcoin futures and then simultaneously buying bitcoin to close any pricing gap. So it doesn’t matter quite as much whether a bitcoin ETF or futures fund is launched, the price of bitcoin will still increase.

There are a lot of benefits to a bitcoin ETF and it will be the better option for many investors. I prefer to buy the bitcoin itself though to save on fees and get that direct investment on the price. An ETF will track the price of bitcoin but not always perfectly.

Still not investing in cryptocurrency? Don’t miss the rest of the videos in our cryptocurrency tutorial series for beginners!
Two ways to value bitcoin and why it could go to $190,000 in a few years!
Price forecasts for 7 other cryptocurrencies including Ethereum, Litecoin and Stablecoins
Bitcoin vs Ethereum: Which is the Better Investment?

0:00 Bitcoin ETF Explained
1:44 How Bitcoin ETFs Work
2:07 Pros and Cons of a Bitcoin ETF
4:20 How Bitcoin ETFs will Drive Bitcoin Prices
6:01 ETFs vs a Bitcoin Futures ETF
6:51 Should You Invest in a Bitcoin ETF?

#cryptocurrency #crypto #bitcoin

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

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20 thoughts on “Bitcoin ETFs Will Boom…But Watch this BEFORE You Buy

  • January 22, 2022 at 2:56 pm
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    you have alot of nerve Jospeh Hogue recommending WEBULL a chinese owned company to your subscribers…. This is not a wise suggestion. Do you think Mr. Hogue the communist chinese party will respect and not abuse our social security numbers?? very inconsiderate

    Reply
  • January 22, 2022 at 2:56 pm
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    Before getting into this remember…Not your keys, not your coins.

    Reply
  • January 22, 2022 at 2:56 pm
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    I'm not a fan of futures contracts… especially cash settled bitcoin futures. I would continue to buy the asset directly and through gbtc as well in my retirement account

    Reply
  • January 22, 2022 at 2:56 pm
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    How about BLOK? ETF holding not a Bitcoin , but rather companies involved in block chain technology?

    Reply
  • January 22, 2022 at 2:56 pm
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    Portfolio investment – 2 million dollar
    Yield- 5 percent yield
    Invest at 8th September
    Payment date 30 the September and got 100000 dollar that day.

    This example is right or wrong?

    Reply
  • January 22, 2022 at 2:56 pm
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    Disclaimer: Not trying to be a jerk.
    If you are getting into a Bitcoin ETF, then why would you not just buy Bitcoin on a reputable platform?

    Reply
  • January 22, 2022 at 2:56 pm
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    A bit off subject; staking ETH with Lido as stETH tokens has been quite fruitful. Daily gains 😬

    Reply
  • January 22, 2022 at 2:56 pm
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    When Lambo Sirs?

    Reply
  • January 22, 2022 at 2:56 pm
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    The boe tie cracks me up. It's not 1940

    Reply
  • January 22, 2022 at 2:56 pm
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    Hi Joe, can you make a vid on those beaten down insurance stocks such as goco and mortgage stocks such as fmcc?

    Reply
  • January 22, 2022 at 2:56 pm
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    Freeze-dried bitcoin, just add intrinsic value.

    Reply
  • January 22, 2022 at 2:56 pm
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    What is BLOK?

    Reply
  • January 22, 2022 at 2:56 pm
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    The reason why the U.S. is number one is cause they don't FOMO in and get REKT!

    Reply
  • January 22, 2022 at 2:56 pm
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    Well no shit Gary! 😂🤣😂

    Reply
  • January 22, 2022 at 2:56 pm
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    Hi Joe, hope all is well with you . No more news letters? Haven't received any since this week

    Reply
  • January 22, 2022 at 2:56 pm
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    Would love to see an XRP ETF at some point. XRP will be used for cross border payments, XLM will be for retail investors… Stack up

    Reply
  • January 22, 2022 at 2:56 pm
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    What ETFs or stocks do you recommend for insurance purposes on your portfolio against big downside please no uvxy

    Thanks carl

    Reply

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