Until now we were discussing Bitcoin ETF but Ethereum ETF has also entered this race. Cryptocurrency investors say that Ethereum ETF Is the Next Big Thing After Bitcoin ETF.
We all know that as soon as Bitcoin ETF entered into the cryptocurrency market, discussions about introducing all cryptocurrencies started intensifying. Meanwhile, Ethereum ETF has been launched by many companies.
In this article, we understand what Ethereum is and how right it would be to invest in it.
What is Ethereum ETF?
As we all know Ethereum is the second largest cryptocurrency after Bitcoin. Now ETF of Ethereum has arrived in the world of cryptocurrency.
The price movement of Ethereum ETF will depend on the cryptocurrency of Ethereum. This means that the price of Ethereum cryptocurrency will be the same price we will see for Ethereum ETF.
But we all know that cryptocurrency is a very volatile market in which the price moves up and down very quickly.
So the price of Ethereum ETF might be slightly different from the Ethereum cryptocurrency because its volatility is very difficult to trace.
But this does not mean that the price of Ethereum ETF and Ethereum cryptocurrency will be very different, its price will remain almost the same.
How world seeing Ethereum ETF?
If we talk about Ethereum ETF, then recently Bitcoin and Ethereum ETFs have been approved in Hong Kong.
Cryptocurrency is already being used in many European countries, so ETF also got approval easily there.
America’s crypto market is the largest in the world. However many countries still have a complete ban on cryptocurrency.
Ethereum ETF in India
India has a very neutral stand regarding cryptocurrency, neither are they able to ban the cryptocurrency completely nor are they able to legalize it completely.
If you trade in cryptocurrency in India, you may have to pay a huge amount of tax.
The special thing is that whether you are profitable or in a loss in cryptocurrency, you have to pay tax on everything, which is around 30 to 35% tax.
Nirmala Sitharaman, who is the current Indian Finance Minister, had stated cryptocurrency that cryptocurrency is not a legal entity.
Many illegal payments are made through cryptocurrency such as in the dark web, betting sites, and many other illegal activities.
But he did not say that you cannot trade in cryptocurrency, he said that the tax that we have imposed on cryptocurrency trading is a right tax.
Cryptocurrency market in India
Let’s currently talk about how the cryptocurrency market is in India. We can guess from the fact that there is no local Indian startup that has received approval from the Indian Government for cryptocurrency trading.
But there are many apps through which you can trade in cryptocurrencies and all these cryptocurrency apps are foreign.
Seeing this attitude of the Indian government, many cryptocurrency trading apps are removing their business from India, one of which is OKX.
Recently you must have heard the news that Okx closed all our business in India and the Indian investors who were trading in cryptocurrency through this app have been informed through the mail that we have closed our business in India. You can withdraw all your money from this app.
Can Ethereum ETF Overtake Bitcoin ETF?
See, Bitcoin cryptocurrency is the first cryptocurrency that people trust even today and its price is very high.
If we compare the price of Ethereum cryptocurrency and the privacy of Bitcoin cryptocurrency, then it is a lot of difference.
But there is a difference between Director Cryptocurrency and the Crypto ETF. Every ETF has its price and the price of Bitcoin ETF to Ethereum ETF is the same as that of many companies.
Now if we talk about the returns from this, it will depend on the price movement of both the cryptocurrencies.
The price of Bitcoin cryptocurrency may be much higher than Ethereum as the current price of Bitcoin is $64,583 and Ethereum price is $3112.71.
But it is possible that in the coming time, the price of Ethereum will increase faster than the price of Bitcoin. So if you have bought Ethereum’s ETF, it may increase more than Bitcoin’s ETF.
Conclusion
There is a huge difference between the price of cryptocurrency and the price of cryptocurrency ETF. Because the company decides the price of ETF, how much to keep but its return depends on its price movement.
Now only time will tell how much return the price of Ethereum ETF gives in the coming time.
But instead of investing in a cryptocurrency, it is better to invest in a cryptocurrency ETF because this will keep your investment completely safe and will also remain in your sight.
Because the way the Indian Stock Market is run on the rules made by SEBI, there is no rule or any direct organization to regulate cryptocurrency.
So if you invest in a cryptocurrency ETF, you can avoid fraud in the cryptocurrency market.