There is now an official way to make money with an unofficial means of payment. Bitcoin now has its actual exchange traded fund: Bitcoin ETF. It means that even if you don’t want to own Bitcoin, you can still make money by simply making smart bets based on the price of the digital currency.
Bitcoin ETF approved
Bitcoin is a decentralized currency, which means that it is not recognized as an official currency by well-known institutions. That makes it difficult to achieve some things: for example, it is for this reason that you cannot just pay with Bitcoin everywhere. However, you will soon be able to work with Bitcoin within the official financial system. 11 spot Bitcoin ETFs are made available from investment companies such as BlackRock, Fidelity and Grayscale. Also read our article in which we explain what an ETF is.
The statement from the SEC, the American government agency responsible for the approval, speaks volumes. Many people see this as ‘the big acceptance’ of digital currencies in the central financial system. The SEC wants to put a stop to this, as it says: “While certain spot Bitcoin ETFs have approved trading, we do not approve Bitcoin. Investors should beware of the various risks associated with Bitcoin and products whose value is linked to crypto.”
Make money from Bitcoin
But even though the SEC states this, this will feel different for people involved in crypto. The organization has blocked every option to do something with Bitcoin over the past 10 years, including the ETF for all those years. How it came to the decision to approve it now is unknown. Maybe because BlackRock is the largest investor in the world? It undoubtedly also has to do with a lawsuit that took place in April 2023 in which the judge believed that the SEC had not properly handled Grayscale’s Bitcoin ETF application.
In any case, the Bitcoin ETF is here and that probably does the price of the digital currency a lot of good. The sharp rise that started after fake news appeared about the approval of the ETFs, followed by a sharp drop, can now probably stabilize (or perhaps even rise again, since the ETF is finally coming). An ETF works much like a fund, but they are based on prices and not on a company with assets as in the normal case. In any case, Bitcoin can now be traded and you can therefore earn money from the coin without needing a wallet yourself. So you don’t have to have crypto yourself to make money from that crypto.