Galaxy Interactive – $ 325 million in blockchain gaming

The news about Bitcoin ETFs is rolling, but there are a few differences that should not be misled.

Now that the US stock exchange regulator has given in to pressure from investors and admitted a Bitcoin ETF to the stock exchange for the first time on October 19 at 3:30 p.m. CET, the news about Bitcoin ETFs on the Internet is rolling over and over again. The abbreviation stands for Exchange Traded Funds. These are exchange-traded index funds. This means that the composition of the fund corresponds to the underlying index. An index, in turn, describes the change in the price of, for example, a share, several selected shares or an entire stock market.


When looking at the various news on the Internet, it is noticeable that the term Bitcoin ETF is used for different exchange-traded index funds. On the one hand there is the Canadian Bitcoin (BTCC) and the American Bitcoin ETF (BTFD). These two only have the base value of Bitcoin as their underlying index.

On the other hand, there is the BTC FP, an ETF from the investment company Melanion Capital from Paris. The CEO stated that this Exchanged Traded Funds has been approved by France’s main exchange, Euronext Paris, since August 2021. However, this is a product whose index refers to the price changes of several companies that have something to do with crypto. In the case of the Melanion Capital Exposure Indexes are companies like Argo Blockchain, a crypto mining company. Another company in the index is Mike Novogratz ‘ Digital Asset Merchant Bank Galaxy Digital. Also Michael Saylor’s software company MicroStrategy is listed in the index. The connection between companies and the crypto sector is different, but the two CEOs Novogratz and Saylor are known for filling the assets of their balance sheets with cryptocurrencies such as Bitcoin.

The ETF differences are in the details

The point is that a “Bitcoin ETF” doesn’t work any differently in Europe. ETFs are highly regulated products in Europe that fall under the area of ​​investment funds and must be based on several diversified base values. A Bitcoin ETF with only one underlying value, as is the case in Canada or the USA, is currently unthinkable due to the active regulations here. So whoever brings a Bitcoin ETF to the various exchanges in the European Union these days is actually only issuing an index fund of crypto-affiliated companies – a real Bitcoin ETF can currently only be available in markets that allow ETFs with only one underlying .

If you would like to find out more about the American Bitcoin ETF, why it makes less sense than the American one and why this development will mean that you have to pay more for a “real” Bitcoin in the future, you can find out in our podcast:

source site