If you’ve been following recent digital currency news, then chances are that you already know that the Winklevoss-backed ETF Bitcoin securities project was blocked by the US corporate regulator, known by the name of the Securities and Exchange Commission.

This is quite understandable, considering the fact that economic analysts did mention that the chances for approval were fairly low, but thoroughly understanding the reasons is essential to make sure that the project doesn’t fail next time. To put things better into context, the following question should be asked: would you be tempted to invest into an asset that may be illegal now, or sometime in the future?

During the last couple of months, there have been numerous discussions about the upcoming Bitcoin ETFs and their potential to increase the popularity, use, trading activity and price of the digital currency.

For those who do not know, ETF represents an abbreviation that stands for exchange traded funds, which are basically market securities, tacked on an index, such as bonds, commodities and index funds. The main difference between ETFs and other exchange-traded assets consists in the fact that the prices of ETFs constantly changes throughout the day, just like bitcoin’s, based on the trading activity. Not only this, but ETFs also generally offer better daily liquidity alongside with lower fees for mutual funds shares, hence why they are a very attractive alternative for investors from all around the world.