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El Salvador will buy Bitcoin every day starting tomorrow, says president

El Salvador will start buying bitcoin every day, according to Salvadoran President Nayib Bukele. Since adopting the cryptocurrency as legal tender, El Salvador has purchased around 2,381 bitcoins for its treasury.

El Salvador will buy Bitcoin every day

The president of El Salvador, Nayib Bukele, announced this Thursday on Twitter that his country will buy a bitcoin every day starting tomorrow.

Following Bukele’s announcement, Tron founder Justin Sun said he will do the same, tweeting: “We remember @nayibbukele’s initiative to buy bitcoins daily. We will also buy one bitcoin every day starting tomorrow.”

Bukele was undeterred by the recent turmoil surrounding bankrupt cryptocurrency exchange FTX. On Sunday, the Salvadoran president explained in a tweet:

FTX is the opposite of Bitcoin. The Bitcoin protocol was created precisely to prevent Ponzi schemes, bank runs, Enron, Worldcom, Bernie Madoff, Sam Bankman-Fried... bailouts and wealth transfers. Some understand, others still don't. We are still early.

El Salvador adopted bitcoin as legal tender along with the US dollar in September last year. Since then, the country has bought around 2,381 bitcoins for its treasury. President Bukele is a strong supporter of cryptocurrencies. He recently attributed El Salvador’s tourism recovery to BTC, surfing, and reduced crime.

However, a survey conducted in October indicated that almost two-thirds of the population have a negative impression of bitcoin, and only a quarter of Salvadorans use the cryptocurrency.

The International Monetary Fund (IMF) has also warned El Salvador about making Bitcoin legal tender, claiming that the costs of making BTC a national currency outweigh its potential benefits. However, the government of El Salvador has rejected the IMF warning and continues to adopt bitcoin.

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Where to buy a Bitcoin ETF

The first Bitcoin exchange-traded fund (ETF), offered by ProShares, launched on Tuesday this week. It is traded under the symbol BITO and will allow equity investors to gain exposure to the digital currency without having to purchase it on a crypto exchange.

How and where to buy Bitcoin ETFs
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What is the Bitcoin ETF?

Before buying Bitcoin ETF (BITO), one must first distinguish between Bitcoin and Bitcoin futures. In essence, a futures contract for any asset is simply an agreement to buy or sell the asset on a future date and at a predetermined price.

Now, buying Bitcoin ETF means you are buying a stock whose value fluctuates based on the price of Bitcoin futures contracts traded on the Chicago Mercantile Exchange.

Should I buy Bitcoin ETF today?

Many professional fund managers agree that it is a reasonable strategy not to invest more than 5% to 10% of your total portfolio in crypto assets. Buying the new BITO Bitcoin ETF is ideal for many investors who want to be exposed to Bitcoin but do not want to go through the process of opening a crypto account.

Bitcoin ETF Price Predictions

According to experts at Fundstrat Global Advisors, the price of Bitcoin could exceed $ 166,000 by the end of 2021. However, the price of Bitcoin does not necessarily correlate with the price of ETFs, which is confusing.

This is because futures contracts are not directly backed by physical Bitcoin, but rather by a derivative of Bitcoin. For example, Bitcoin can gain 40%, but Bitcoin ETF can only increase by 30%. This is because future ETFs have contracts that expire periodically and must be redeemed.