Edit: I just learned the ETF would not contain altcoins. Still, I'd like to know why people would invest in a Bitcoin ETF.
Disclaimer: I consider myself a beginner in the world of investing.
My understanding is an ETF is a basket of securities an investor buys (and/or sells) for diversification, i.e. to lower risk and balance exposure. In stocks it's intuitive for me that I would buy something like an index ETF so that even if a few companies fail, overall it wouldn't hurt my portfolio.
In a Bitcoin ETF though I can't connect the dots, because even if the ETF would contain different cryptocurrencies, aren't all cryptocurrencies [currently] largely following the trend of Bitcoin? Removing the initial bull run from the hype, isn't it ultimately a question of whether or not you believe in Bitcoin?
And assuming that statement is valid, why wouldn't one just invest in Bitcoin itself?
TIA for the perspectives I'm about to learn.
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