Stunning Bitcoin ETF Review From Famous Billionaire: I Won’t Buy!

The Securities and Exchange Commission will allow the first U.S. Bitcoin futures exchange-traded funds to begin trading next week, as the SEC is unlikely to block Bitcoin ETF applications by ProShares and Invesco, CNBC reported on Friday. But billionaire businessman Mark Cuban is not considering investing. For details cryptocoin.com keep reading.

Billionaire Mark Cuban prefers Bitcoin over Bitcoin ETF

On the show he attended, when asked if he would buy ETFs once they are officially listed, the “Shark Tank” investor and Dallas Mavericks owner was blunt and said “No”. However, Mark Cuban stated that he can buy Bitcoin (BTC) directly. For Mark Cuban, who previously called Bitcoin “better gold than gold” because of its algorithmic scarcity, this makes sense because there is only a limited amount in design. Seeing more promise in Bitcoin as a store of value rather than a currency, Mark Cuban said in April, “This is why I own Bitcoin and that’s why I never sold it.”

Mark Cuban also has a wide portfolio of cryptocurrencies that includes digital currencies such as BTC, Eher, Dgecoin and other altcoins. Its portfolio includes NFTs or immutable tokens and many Blockchain companies. However, proponents of the futures-based Bitcoin ETF argue that it can offer equivalent benefits to buying Bitcoin directly.

What is an ETF and what are its advantages/risks?

While a physical ETF holds the underlying assets or securities on which its value depends, a futures ETF tracks futures contracts by providing the ability to leverage an asset without taking direct ownership. In this case, a physical Bitcoin ETF holds Bitcoin and tracks its price, while a futures-based Bitcoin ETF tracks Bitcoin futures contracts.

With a futures-based Bitcoin ETF, investors can leverage the cryptocurrency in their portfolio without having to own it. According to crypto analyst Taylor Locke, these investment tools can be useful for those who are unsure of how to buy Bitcoin securely, or who prefer not to take the responsibility of protecting and securing their Bitcoin wallets. The analyst also reminds that an investor who buys the cryptocurrency outright should be able to digest the volatility, given that the price of Bitcoin fluctuates frequently.

Bitcoin ETF

The ETFs proposed by ProShares and Invesco are based on futures contracts and will follow the mutual fund guidelines that SEC chairman Gary Gensler demands of any potential futures-based Bitcoin ETF. According to analyst Taylor Locke, futures-based Bitcoin ETFs also come with unique risks, including higher costs and not necessarily tracking the price of the underlying asset. Todd Rosenbluth, director of ETF and mutual fund research at the CFRA, comments:

The ETF price will not match the Bitcoin price. Therefore, it is better to take short-term risks than to buy and hold long-term investments.

Regardless, financial experts often warn that investing directly in cryptocurrency is quite risky due to its volatile and speculative nature. They recommend investing only as much as you can afford to lose.

Contact us to be instantly informed about the last minute developments. twitterin, Facebookin and InstagramFollow and Telegram and YouTube join our channel!

Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.

Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.


source site