Spot bitcoin exchange-traded funds, or ETFs, received regulatory approval from the SEC in the United States (SEC) on Wednesday, allowing them to start trading on Thursday.
11 Spot Bitcoin ETFs in Spot Approved
The following products (along with the suggested ticker symbols for them) received approval from the regulatory body:
- iShares Bitcoin Trust (the IBIT) offered by Blackrock.
- 21Shares Bitcoin ETF from ARK (ARKB)
- BTCW, or the WisdomTree Bitcoin Fund
- Bitcoin ETF Invesco Galaxy (BTCO)
- Bitwise ETF for Bitcoin (BITB)
- HODLing the VanEck Bitcoin Trust
- ETF for Franklin Bitcoin (EZBC)
- Bitcoin Trust with Fidelity Wise Origin (FBTC)
- Bitcoin Fund Valkyrie (BRRR)
- Bitcoin Trust in Grayscale (GBTC)
- Bitcoin ETF HashDex (DEFI)
Before the SEC gave its approval, a lot of issuers reduced and waived their annual bitcoin ETF fees in an effort to win over investors.
A Prolonged Wait for Bitcoin ETF Spots
The United States has faced many obstacles in its long journey to approve a spot bitcoin ETF. When a company connected to the Winklevoss twins submitted the first application to the SEC for a financial product of this kind, the adventure officially started in 2013.
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Bitcoin ETFs founded on futures contracts products were ultimately authorized by the SEC beginning in 2021, despite the fact that that application was ultimately denied. Because of the unregulated nature of bitcoin, a significant number of applications for spot-based bitcoin ETFs have been turned down thus far due to the high level of risk involved for investors. In the end, cryptocurrency asset manager Grayscale filed a lawsuit against the SEC to demand further explanation.
But what really gave the idea traction was Blackrock’s (BLK) June 2018 application during a spot bitcoin product. Many other investors, including Fidelity and Franklin Templeton, entered the market at the same time as the titan of traditional finance. Given the firms’ crucial role in the American financial system, this was interpreted as an indication that approval from regulators was imminent.
While authorities and issuers worked together to iron out specifics, there were a few last-minute hiccups. Bitcoin prices shot past $48,000 on Tuesday after an unapproved post made by the SEC’s consideration on social networking platform X caused a spike in value. The regulator later disclosed that its X consideration was actually hacked.
What Bitcoin Means After This Regulatory Approval
The largest cryptocurrency asset in the world has received important regulatory approval with the SEC’s approval, which should allay investor concerns about making investments in the market. It gives investors additional regulatory protections in addition to enabling them to work with reputable financial institutions. However, SEC Chair Gensler cautioned investors to weigh the risks before investing in the product.
“We weren’t going to endorse or support bitcoin, even though we accepted the listing as well as trading of specific spot bitcoin ETP contributes today. Investors ought to exercise caution given the numerous risks connected to bitcoin and goods whose value is derived from cryptocurrency, according to a statement from Gensler.
Up until now, the only ways for regular investors to get exposure to cryptocurrencies were through direct coin purchases or through exchange-traded funds (ETFs) that deal in cryptocurrency futures. Investors, particularly retail investors, will be able to access bitcoin through a spot bitcoin exchange-traded fund (ETF) without having to keep the money they invest in a wallet that holds bitcoin. They merely keep the ETFs within their brokerage accounts instead.
The price of bitcoin has increased significantly in recent months due to analyst optimism that large sums of money are going into bitcoin spot ETFs. Forecasts from Bloomberg Intelligence suggest that the market for spot bitcoin exchange-traded funds (ETFs) may eventually reach $100 billion. According to financial services provider Galaxy, within three years, inflows into spot bitcoin ETF products could reach $39 billion, up from a value of $14 billion in the first year.
How much will be purchasing a bitcoin ETF cost you? These are the funds that are most and least expensive.
After receiving the long-awaited approval from the SEC, bitcoin exchange-traded funds launched on Thursday. They are available at a range of price points, and there are indications that a fee war has already begun.
With an expense ratio of 0.20%, the Bitwise platform Bitcoin ETF (BITB) is the least expensive of all the recently launched bitcoin funds. A number of other funds trail closely behind, such as the iShares Bitcoins Trust (IBIT) at 0.25% and the Ark21Shares Bitcoins ETF (ARKB) at 0.21%.
Additionally, for the initial $1 billion in assets, the Bitwise fund offers an interim exemption that completely waives the fee for a period of six months. Similar waivers are included in other proposed funds, so those who take advantage of the digital currency bitcoin ETFs will incur minimal or no management costs for a limited period of time.
Grayscale Is Boasting About Being the First Bitcoin ETF to Start Trading
The SEC (Securities and Exchange Commission) finally granted Grayscale’s request on Wednesday to convert its $27 billion bitcoin credibility into an exchange-traded fund (ETF).
According to an indicative for the company on Thursday, Grayscale, the supervisor of GBTC, is taking pride in getting the initial of the recently authorized batch of spot bitcoin, or BTC, ETFs (exchange-traded funds) to start trading.
“I am happy to confirm that GBTC started pre-market trading at 4 am EST this morning,” Grayscale’s head of comms Jennifer Rosenthal said via email.
The Securities and Exchange Commission (SEC) finally approved Grayscale’s $27 billion bitcoin trust conversion into an exchange-traded fund (ETF) on Wednesday. This is a historic moment for the cryptocurrency industry as Grayscale is one of many applicants who got approval by the U.S. markets oversight for the first time.
With a fee of 1.5%, GBTC charges investors significantly more than its competitors, who charge between 0.2% and 0.9%. GBTC is currently trading at $40.496 on the NYSE Arca in pre-trading. Grayscale seems to be depending on the early advantage that comes with having $27 billion in assets, which gives it a competitive edge over the competition.
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