Bitcoin is a hot investment asset in the investment community; since bitcoin is acquiring traction, new investment means like bitcoin futures and exchange funds have also arrived in the marketplace. Blockchain, a distributed ledger technology, correspondingly offers the exchange trade fund investment.
Bitcoin ETF and blockchain ETF vary from each other by an exceeding extent. Satoshi Nakamoto, the developer of bitcoin, introduced the concept of blockchain in the very first place. After Satoshi Nakamoto, Vitalik Buterin created the first-ever most successful blockchain-based model. So let’s find out the differences between blockchain and bitcoin ETF.
Blockchain ETF!
The fundamental of blockchain ETF is to analyze the market valuation of companies that have listed their stocks. You can check websites like https://pattern-trader.app to know more about Bitcoin and blockchain ETF. Blockchain ETF merely tracks the market valuation of companies that have invested in blockchain-based startups.
Blockchain is an independent technology, and no government authorities can interfere. Blockchain can easily have a solo existence without bitcoin, but bitcoin cannot survive without blockchain technology. Blockchain investments do not focus only on a single sector.
Bitcoin ETF
Bitcoin ETF refers to the bitcoin exchange-traded fund; the security exchange commission has the record of the majority of a bitcoin exchange-traded fund. These ETFs have anticipated analyzing the spot value of bitcoin with the help of bitcoin futures contracts. Of course, we all are familiar that bitcoin futures contracts are being traded on the CME.
Bitcoin ETFs are currently new as the foremost ETF was live in October 2021. The main bitcoin ETF trails the market valuation of bitcoin futures contracts hung with the price of cryptocurrencies in the upcoming months. Securities Exchange Commission or SEC is the authority that allows or bans any bitcoin ETF. The Pro shares bitcoin ETF acquired approval from the SEC.
Since cryptocurrencies have a volatile nature, the bitcoin ETFs are much more volatile than blockchain ETFs. The Blockchain ETFs are not pegged with the bitcoin volatile market value. Blockchain technology is dependent upon a network of nodes, and this technology’s market cap is insignificant.
Differences
To know the differences between these two investment mediums, it is mandatory to acknowledge what these technologies are tracking. We all know bitcoin is a digital currency, and blockchain is the technology that ensures decentralization, security, and secrecy in the bitcoin complex.
Bitcoin futures contracts are present on every famous trustable exchange, but cryptocurrency’s guidelines in many countries are undefined. All the more many countries have banned bitcoin and other digital currencies. As the cryptocurrency market is expanding, cryptocurrency regulations are correspondingly evolving.
Blockchain is the revolutionary technology that currently underlies numerous financial models. No government authorities have ever banned blockchain technology. However, India recently announced the cryptocurrency bill.
As per the rich sources, this bill will ban every private currency with few expectations to make people aware of the core technology of cryptocurrency. India is going to educate its population regarding blockchain technology.
There are ample blockchain ETFs present on trustable exchange. As mentioned ahead, the major bitcoin exchange was launched two months back, whereas the foremost blockchain ETF was live in 2018. The fact that might amaze you is that Blockchain ETF has a market cap of almost $3 billion.
Alongside bitcoin, the bitcoin ETF will correspondingly grow in the future. It is because cryptocurrencies are gaining traction to an exceeding extent, as mainstream investors who never believed in the existence or future of cryptocurrencies are currently making immense profits through these virtual currencies.
All the more, bitcoin ETF offers several advantages to a stakeholder. First, ETF embraces the ease of buying cryptocurrencies. Moreover, it increases the smoothness, security while buying digital currencies. Moreover, ETFs put the best foot forward to mitigate the troublesomeness while storing these digital tokens.
Some 0f the popular blockchain ETFs include Global X Blockchain, VanEck Vectors digital transformation ETF, Capital Link NextGen Protocol ETF, and many others. Blockchain can change the commercial segment in a much better way. Blockchain models like Cardano and Solana have a very bright future.
Blockchain NFT games also have a bright future. This is because the profit potential of these games is very high.