Many people hear "ETF" every day — but what exactly is an ETF and why does it greatly impact the price of Bitcoin? Understand it in 1 minute 👇

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1️⃣ What is an ETF?

An ETF (Exchange-Traded Fund) is an investment fund that mimics the price of an asset such as Bitcoin, Ethereum, or gold.

You don't need to buy and hold crypto yourself, just buy the ETF on the stock exchange, but still benefit from the price fluctuations of that asset.

Simply put: it's like buying shares representing BTC, rather than holding $BTC directly.

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2️⃣ Not all coins have an ETF

Currently, only BTC & ETH have spot ETFs due to:

✔ Extremely high liquidity

✔ Large market capitalization

✔ Easy approval by regulatory authorities

Small altcoins like $SOL , $ADA … have not met the standards — but are on the “waiting list” next.

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3️⃣ The ETF approval process (very strict)

• Organizations like BlackRock, Fidelity… submit applications to the SEC

• The SEC analyzes risks, transparency, and investor protection

• If standards are met → listed on major stock exchanges like Nasdaq, NYSE

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4️⃣ The progress of crypto ETFs over the years

• 2013 – First BTC ETF: rejected

• 2021 – Approval of Bitcoin Futures ETF

• 2024 – Approval of Bitcoin Spot ETF

• 2025 – Approval of Ethereum Spot ETF

→ Coming soon: Solana ETF, ADA? The market is waiting for that.

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✅ Conclusion

ETFs help institutional money and traditional investors easily enter crypto — no need for cold wallets, private keys, or fear of hacking.

Every time a new ETF is approved → the market takes another step towards "mainstream adoption".

#CryptoBasics #BitcoinETF #CryptoEducation #NextBullRun