Taking Bitcoin to the stockmarket won’t do much for its risky image

Since its inception in 2008 digital currency Bitcoin has attracted critics who argue it’s inherently risky. The latest push to create an exchange traded fund (ETF) in order to make trading it easier, suggests attitudes to it haven’t changed. But some risks associated with a Bitcoin ETF is just like any other asset that becomes tied to investors and the stockmarket. The US Securities and Exchange Commission (SEC) has already rejected an application to create an ETF for Bitcoin. But there are two other proposals - (SolidX & Grayscale) still before the commission. Bitcoin is intended to act like currency in that, once you have a Bitcoin, you can use it to buy goods. It’s much the same as using electronic payments from a bank. Like a currency too, it has its own exchange rate and can be traded for other currencies. It has a history of wild price fluctuations as investors have in turns bought it with enthusiasm and sold it when spooked. The push for Bitcoin ETFs is not only the result of more and more money flowing into these funds, but also because ETFs make it much easier to invest in types of non-traditional assets like Bitcoin.