Introduction

Can Bitcoin ETF be of benefit to us as Nigerians? In this day and time, being a Nigerian and living in Nigeria is very tedious. With all the crazy shakes in the country’s economy and economic policies. Which makes living day to day challenging and so also for investments. It is nothing but common sense to look out for good investment opportunities. Considering that, let’s look at Bitcoin ETF: benefits to a common Nigerian. We would see all about it and how can it benefit us.

Bitcoin ETFs make it possible for people like me and you to invest in Bitcoin without actually owning the digital currency. Instead of buying Bitcoin directly, we can buy shares or units of the ETF through our preferred brokerage accounts. The ETF takes care of holding the Bitcoin for the us

Brief about

Bitcoin is a technology that serves as a digital currency. It has the ability to settle transactions without the involvement of a central third party. It has many incredible features. For example, encryption, which allows users to transact peer-to-peer in a synonymous way. Censor proof, and inflation proof amongst many other great features. With all those great features, bitcoin is a cryptocurrency. It leads an industry that is just breaking into mainstream adoption. On one front, it competes with commodities like gold which have been traded for more than a century.

Bitcoin ETF in simple language

Exchange Traded Fund ETF represents an index used to track a commodity, a stock, or a collection of assets. It can be used to measure the movement of an industry- gain or loss per day. 

Bitcoin ETF allows investors to gain exposure to Bitcoin’s price without actually owning the digital currency itself. So instead of buying and holding Bitcoin directly, you can purchase shares or units of the ETF. Through the use of your brokerage account and the EFT holds the Bitcoin for you. With that said, we have set a good precedence. Now let’s discuss BITCOIN ETF: benefits to a Common Nigerian which is our focus.

So how does ETF benefit the common Nigerian?

Bitcoin is in its very early stage and fairly technical to navigate around. The brokerage houses say they would help me, and you of course to handle those technical parts. And give us a less complex way to get involved in investing in Bitcoin. I would summarize what that means to me and you in the following points

• Improved accessibility: So like I said earlier, dealing with Bitcoin at this stage is relatively technical and not very beginner friendly. So having brokerage houses take the technical headache is going to be a way to open up to more people to jump on the train of bitcoin investment
• Regulation and Transparency: The crypto world is not regulated at this very moment. However, EFTs are regulated and subject to oversight by financial authorities, hence providing a layer of security and transparency for investors. This can protect us as common investors from the risks associated with investing in emerging asset classes like Bitcoin.
• Diversification: The cryptocurrency market is a very volatile market, and investing in it can have a sizable downside, although with a commensurate upside, but to limit the risk involved in investing in cryptocurrency, we can add bitcoin EFT to our portfolio alongside other assets like stock, bonds and maybe commodities -like gold, and make the most of the upside possibility while limiting the downside to a bearable minimum.
• Ease of trading: Bitcoin EFTs are traded on regulated Stock Trading Exchanges just like traditional stocks and other EFTs. What that means is we can buy and sell shares of the Bitcoin ETF during regular trading hours, using familiar tools and platforms. This of course improves liquidity and allows for flexible entry and exit of positions.
• Education and Exposure: Bitcoin ETF introduces the average investor like myself or you to the world of cryptocurrency which sparks interest and curiosity in the subject, which in turn would raise the level of adoption of the currency. This would, in the long run, appreciate the value of the asset, and make a profitable investment for us all.

Concluding thought

Bitcoin EFT opens a door for us as common regular investors into the world of cryptocurrency, in a straightforward and regulated way. This gives us a host of opportunities which include accessibility, regulatory oversight, diversification benefits, ease of trading and engagement as well as education and exposure. As the cryptocurrency world keeps evolving, bitcoin ETF provides a superb way for average investors like you and me to transcend the investment world with confidence. It is however highly advisable to do your due diligence and contact professionals if necessary so you can make very informed decisions with your money. Hope you were able to pick a thing or two through the read.