The US SEC has approved 11 spot Bitcoin exchange-traded funds (ETFs), a historic breakthrough after a decade of unsuccessful attempts. This green light is expected to open doors for significant institutional investment in the cryptocurrency market. Approved issuers include major players like BlackRock, Ark Invest, Grayscale, VanEck, Bitwise, Fidelity, Hashdex, WisdomTree, Invesco Galaxy, Franklin, and Valkyrie.
In 2013, the Winklevoss twins initiated the process of filing for an investment fund based on their substantial Bitcoin holdings, and the SEC recently approved their 19b-4 and S1 filings.
Cboe Global Markets revealed that six spot Bitcoin ETFs will begin trading, featuring ARKB, FBTC, EZBC, BTCO, HODL, and BTCW. A total of 14 ETF issuers submitted applications, including BlackRock, Fidelity, Invesco & Galaxy, ARK & 21Shares, VanEck, WisdomTree, Valkyrie, Hashdex, Franklin Templeton, Bitwise, 7RCC, Grayscale, Global X, and Pando.
Spot Bitcoin ETFs involve actual Bitcoin, reducing supply, while Bitcoin futures ETFs track the cryptocurrency’s price through futures contracts.
This approval enables conservative institutional investors, like pension and insurance funds, to gain Bitcoin exposure without direct custody, enhancing cryptocurrency legitimacy.
The US now joins eight other countries in approving spot Bitcoin ETFs. VanEck anticipates over $2.4 billion in inflows in Q1 2024, and Bitwise foresees $72 billion in assets under management for spot Bitcoin ETFs in the US within five years.
With Bitcoin ETF approval, attention turns to the potential for an Ethereum ETF, given Ethereum’s status as the second-largest cryptocurrency.
BlackRock and Fidelity have previously filed for spot Ether ETFs, signaling a broader avenue for regulated investment vehicles to drive further crypto adoption in the US.
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