Bitcoin ETF or Hive Dollar Saving?

The approval of the first U.S-listed exchange-traded funds (ETFs) to track bitcoin by the U.S. Securities and Exchange Commission (SEC) has been heralded as the beginning of the bug future of the world's largest cryptocurrency - Bitcoin. Since Wednesday, January 10, there have been robust discussions and analyses concerning the pros and cons of Bitcoin ETF and how it will affect the price and adoption of Bitcoin. Of the discussions, it has been generally accepted that the approval of Bitcoin ETF will give more exposure to Bitcopi and encourage institutional participation.

Cointelegraph reported that the newly launched spot Bitcoin exchange-traded funds (ETFs) have seen inflows totaling $1.4 billion in the first two trading sessions, according to Bloomberg ETF analyst Eric Balchunas. It is reported that a total of 500,000 trades were made on the funds, totaling a trading volume of $3.6 billion. Those are huge stats that signal a wide adoption and the readiness to embrace a regulated derivative of Bitcoin.

On the flip side, there are reports that Bitcoin price has dropped by 6.8% between Jan. 11 and Jan. 12, confirming bears’ theory of a sell-the-news-style event occurring after the approval of a spot Bitcoin exchange-traded fund (ETF), according to Cointelegraph. The much-anticipated Bitcoin ETF approval ensued after a 75% rally in the 90 days leading to the initial trading on Jan. 11. This partially could explain the lack of excitement and the subsequent price correction down to $42,000. While there are many sides to the Bitcoin dip, some analysts hold that people are bearish on Bitcoin in a bid to hold shares in Bitcoin ETF investments where their investments would be less volatile.

How profitable will Investing in Bitcoin ETF be?

My mind is already razing at what the profit margins would be like for Bitcoin ETF. These thoughts is spurred by the predetermined costs attached to Bitcoin ETF shares. BlackRock proposes to charge 0.2% fees until the fund reaches $5 billion in assets under management (AUM). Grayscale will maintain the highest fee among Bitcoin ETF products, imposing a 1.5% fee rate on prospective investors. On the other hand, Bitwise follows closely at 0.24%, while Ark 21Shares and VanEck trail slightly with 0.25% fees. Contrastingly, Ark 21Shares wishes to waive all fees for the first six months or until the product reaches $1 billion AUM.

Fees are already attached which already slices the profit chances that n investor has. There are a few questions that pop into my mind as we delve into looking at the profitability of Bitcoin ETF investment:

• Will holding a share of Bitcoin ETF pay as much as 20% APY?
• If Bitcoin does a 2x price action, will ETF derivative track and respond to that price immediately?
• How easy will it be for investors to sell out their Bitcoin ETF Holdings?

Those are just a few of the many questions that should be answered as we get excited about this ETF approval. Already bitcoinetf is proposing a 14% APY on their website. Or do we think it is possible to draw 50% APY from Bitcoin ETF?

I'd Rather Stick with Hive Dollar Saving

The Hive blockchain has the longest algo-stablecoin that when saved on the blockchain, pays investors 20% APY. Being a stablecoin that has shown stability and is built on the most decentralized and highly secured blockchain. Besides, Hive blockchain supports feeless transactions which means that investing $100k would attract $0 fees, and by year-end, the investment would be $120k. We already know there are security concerns with where the Bitcoin-backing Bitcoin ETF would be held. This becomes crucial with the recent crypto hacks that have wrecked many.

I would rather stick with a Hive dollar saving than push for Bitcoin ETF. What about you?

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