Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impacts?

Hello my steemian friends hope everyone is blessed and healthy, i am feeling immense pleasure while participating another contest hence the topic is Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impacts? I will try to explain it upto my best.

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What is a Bitcoin ETF, and how does it differ from owning bitcoins directly?

Bitcoin ETF is gift of two package include cryptocurrency and Bitcoin and we are doing actually tracking the value of Bitcoin or price of the Bitcoin so in simple word this is exchange trade funds and in this we don't directly invest I have to buy the Bitcoin from cryptocurrency exchange.

The mechanism of work is exactly the same like if the price of Bitcoin will increase the eating will also increase just the difference is that trading is not on the cryptocurrency exchange.

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So there is a lot of things which are going on or which are beneficial first is convenience for the investors because there was a lot of risk associated with directly by the Bitcoin and for example if the invested do sign up and then sometime may lose the wallet or the password so the Bitcoin is loss forever there is no way to get it again but Bitcoin ETF has made tremendous change for investors.

Another benefit of Bitcoin ETF is this is giving chance and the investors who can easily diversify their portfolios. This is actually a centralised system because it is regulating by the government and this is not self earning so in this way this also provide a security or protect the user but there is in accuracy as well because sometime there may be miss match or ETF in accuracy.

For example if 50% increase in the price of Bitcoin and that cannot be accurately in a track on the ETF so what will happen as a result that there will be the Bitcoin price differences and which may loss of Bitcoin user interest.

How can the approval of a Bitcoin ETF by the commissioner of the American Stock Exchange SEC influence the cryptocurrency market? And why did it fall just after this approval?

The approval of the Bitcoin ETF by the commissioner of the American stock exchange has positively influenced the cryptocurrency market and I will discuss it in detail.

When Bitcoin ETF was approved the main greediness for the investors was surprise of Bitcoin because the price of Bitcoin was increasing day by day even on the first day so this brings a positive change for the Bitcoin price.

The thing was after being approved the price of Bitcoin fall why this happened because there are a lot of things which are associated with this initially due to lack of experience tracking was very difficult and they were not able to properly and there was a lot of miss match between the actual price and the price on tracking.

The investors were not ready to reinvest again because they just wanted to benefit immediately they are just spending and they don't want to reinvest just because they want the benefits of in this way the greediness was increased so much so no one is ready to invest.

The most important thing is that transaction fees were very less and another thing is liquidity was increased day by day. And Bitcoin ETF brings so many change investors indirectly can invest without making any wallet or any sign up account because that's that was a big loss whenever they can forgot the key are password they can directly loss the Bitcoin.

Now this system has secured so much this also provide a protection and the rules and regulations are very well regulated and along with that it also impact as a positive on other cryptocurrency as well.

Investors were very worried about the regulation mechanism because at the time there was no such straight rules so they were worried about the regulation and on time selling of their investment so these are some of reasons which lead to Bitcoin price decrease just after approval

How could the approval of a Bitcoin ETF by a financial authority such as the SEC contribute to the legitimacy and institutional recognition of cryptocurrencies?

The approval of Bitcoin ETF by financial authorities such as SEC contribute to legitimacy and institutional recognition of cryptocurrency let's discuss in detail.

By the approval the more and more investors came into trading and they poured their funds. And this brings so much positive change because this is a well settled well regulated mechanism and the most important is that Bitcoin is secured and security is provided.

So, there was a globally adoption for the Bitcoin ETF and it attracted more and more institutional investors because of the price stability while regulation rules and the amount of liquidity which were rising day by day.

The positive thing which brings and contribute to institutional recognition of cryptocurrency was that they don't need to sign up or they don't need to account or any specific A wallet or they don't need to directly on the Bitcoin their assets is now being secured and this was the main reason to attract more and more institutional investors in this trading.

We have steem which is a decentralized model but for Bitcoin ETF this is somewat different and this is well regulated by the financial authority and the government so investors were very secured regarding their investment and they were pouring more and more funds to trading.

How might the introduction of an SEC-approved Bitcoin ETF interact with the decentralized governance of the STEEM blockchain, and how might these two approaches complement or diverge in investors' perspectives on asset management? digital assets?

After the approval of sec along with decentralised governors so if we talk about the what are the approaches or diverse investors perspective on asset management so sec approval has bring a lot of positive changes attract the investors and more secure system don't need to sign up a lot of good thing happens.

When we talk about steem block chain this is basically decentralized governance so if I elaborate the term it means that all the role and regulations is only made by me means the account holder. And most importantly daily reward system getting daily rewards.

So, if I say that decentralized governors of team blockchain and how it manages assets this is basically the community ecosystem and the user of that community who is regulating the account.

The investors always want stability in price security and proper rules and regulations which are strictly followed so for them this is a positive change and along with that when we talk about the ETF Bitcoin so whenever there is market fluctuation and price of Bitcoin price so let's say if the demand of the market we can't fullfill so in return to that raised demand the steem price will increase.

So, let me summarized all the discussion and in keywords that steem block chain is decentralized system means it is governors by no one and its just the account holder or user who is regulating it and all your security and keys are between just the steem block chain and between the user.

Where as if we talk about the ETF it is not managed by on the only user there is a system which is maintaining and regulating it it means that this is not a decentralized system. In future we can say that certain rules and regulation and approval may occur for steem and the steem price and over all its status will increase.

Its all about my today's post.

I would like to invite my friends @jannat12, @mdkamran99 and @ashkhan to take part in the challenge.