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Bitcoin Exchange-Traded Funds (ETFs) have topped the headlines over the past few days, with the US Securities and Exchange Commission (SEC) finally approving applications for the investment tool after quite &#39;the staredown&#39;.For crypto users still quite fuzzy about BTC-ETFs and why crypto charts are up in the green in the run-up to and following the announcement, let&#39;s break down this concept in simple terms to help you understand its significance and potential impact.What is a Bitcoin-ETF?A Bitcoin Exchange-Traded Fund (ETF) is a financial product that tracks the price of Bitcoin, the popular cryptocurrency. Unlike buying Bitcoin directly, where you own the actual digital currency, investing in a Bitcoin-ETF means you&#39;re buying shares of a fund that holds Bitcoin. This allows investors to gain exposure to Bitcoin&#39;s price movements without the need to directly manage or secure the cryptocurrency themselves.How Does it Work?When you invest in a Bitcoin-ETF, you&#39;re essentially buying shares of a fund listed on traditional stock exchanges. This fund holds a certain amount of Bitcoin <img src="https://academy-public.coinmarketcap.com/optimized-uploads/996b6991a47748899418ebca609e7f8f.png" />, and the value of your shares is tied to the performance of that Bitcoin. It provides a way for investors to speculate on the price of Bitcoin without dealing with the complexities of owning and storing digital assets.Key Benefits:<ol><li>Accessibility: Bitcoin-ETFs make it easier for traditional investors to enter the cryptocurrency market without setting up digital wallets or understanding blockchain technology.</li><li>Regulated Environment: Unlike some cryptocurrency exchanges, Bitcoin-ETFs operate within regulatory frameworks, providing a layer of oversight and investor protection.</li><li>Liquidity: Trading on traditional stock exchanges makes Bitcoin-ETFs more liquid compared to purchasing and selling Bitcoin directly on cryptocurrency exchanges.</li></ol>Potential Risks:<ol><li>Market Volatility: Just like Bitcoin itself, the value of Bitcoin-ETFs can be volatile. Prices can fluctuate based on market sentiment and various external factors.</li><li>Counterparty Risk: Investors are exposed to the performance and security practices of the fund managing the ETF. It&#39;s crucial to choose reputable and well-established funds.</li></ol>Current Landscape:Currently, Spot Bitcoin exchange-traded funds (ETFs) are incorporated in just eight countries worldwide: G20 countries Canada, Germany, Brazil, and Australia, as well as tax havens Jersey, Switzerland, Liechtenstein, and Guernsey.Last week, the United States securities regulator approved the incorporation of Bitcoin-ETFs, making the US ninth on the list and opening the door for a broader investor base to participate in the cryptocurrency market. We bet the entire industry is waiting to see if other economic superpowers will follow suit.Bitcoin-ETFs are just one of the many ways to bridge traditional finance (TradFi) and the cryptocurrency world. They offer a more straightforward way for investors to gain exposure to Bitcoin without diving into the technicalities of cryptocurrency ownership. However, as with any investment, it&#39;s essential to conduct thorough research and consider your risk tolerance.Catch up on our published articles for the week!NEWS<ul><li>Swift SEC Feedback on Bitcoin ETF Fees Sparks Concerns of Approval Process Delay &gt;&gt;&gt;<a href="https://defi-planet.com/2024/01/sec-to-reject-all-bitcoin-spot-etf-proposals-in-january-says-matrixport-analyst/" rel="noopener noreferrer nofollow"> Learn more.</a></li><li>U.S. SEC Greenlights Spot Bitcoin ETPs After 11 Years and 20 Rejections &gt;&gt;&gt;<a href="https://defi-planet.com/2024/01/u-s-sec-greenlights-spot-bitcoin-etps-after-11-years-and-20-rejections/" rel="noopener noreferrer nofollow"> Learn more.</a></li></ul>ARTICLES<ul><li>Metaverse 101: Exploring the Seven Technologies that Power the Metaverse &gt;&gt;&gt; <a href="https://defi-planet.com/2024/01/metaverse-101-exploring-the-seven-technologies-that-power-the-metaverse/" rel="noopener noreferrer nofollow">Learn more.</a></li><li>MPC vs Multi-Sig Wallet: All That You Need to Know &gt;&gt;&gt; <a href="https://defi-planet.com/2024/01/mpc-vs-multi-sig-wallet-all-that-you-need-to-know/" rel="noopener noreferrer nofollow">Learn more.</a></li><li>Crypto’s Year in Focus: Reflections on 2023’s Pivotal Events &gt;&gt;&gt; <a href="https://defi-planet.com/2024/01/cryptos-year-in-focus-reflections-on-2023s-pivotal-events-2/" rel="noopener noreferrer nofollow">Learn more.</a></li><li>What Is a Fair Launch in Crypto, and How Does It Work? &gt;&gt;&gt; <a href="https://defi-planet.com/2024/01/what-is-a-fair-launch-in-crypto-and-how-does-it-work/" rel="noopener noreferrer nofollow">Learn more.</a></li></ul>Spotlight on interesting projectsTezoro<a href="https://tezoro.io/" rel="noopener noreferrer nofollow">Tezoro</a> is a non-custodial service that allows you to reduce the risk of losing your crypto by ~100 times by creating a backup: a smart contract that can withdraw crypto from your wallet and transfer it to a backup address even if you&#39;ve already lost access to your wallet or died.Tezoro is a non-custodial service. It helps you to prepare your backup, and you confirm it via your MetaMask and deploy it directly to the blockchain.Nobody, including Tezoro, can change the amount or replace the backup address. The only thing you allow it to do is initiate the transfer at the moment you need it.For more information, visit <a href="https://tezoro.io/" rel="noopener noreferrer nofollow">https://tezoro.io/</a><img src="https://academy-public.coinmarketcap.com/optimized-uploads/228773d779b84011b6ded071efe69b9d.jpeg" />If you want more content like this, visit <a href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, <a href="https://medium.com/&#64;defi-planet" rel="noopener noreferrer nofollow">Medium</a>. and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.

Weekly Round-Up #85 | Decoding the Jargon and Making Sense of Bitcoin-ETFs ₿ 💸

DeFi Planet

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