The cryptocurrency community and the Bitcoin market are already reacting to positive sentiment coming from the potential approval of physically-backed Bitcoin ETFs. If the SEC finally approves the long-awaited product, numerous experts expect massive institutional inflows to the cryptocurrency market.
This belief is being fueled additionally by the popular case of gold ETFs that bring $10 trillion to the market cap. But Bitcoin ETFs may not have the same effect as gold ETFs, and here are the reasons why.
Physically-backed ETFs are more valuable for investors since they are supported by real underlying assets. Gold ETFs are backed with actual gold, and the Bitcoin ETF will be backed with actual Bitcoin.
