The US Securities and Exchange Commission (SEC) has given the green light for the launch of 11 spot Bitcoin exchange-traded funds (ETFs). This landmark decision comes after a decade of unsuccessful applications and is anticipated to trigger a surge of institutional investment.
The approved spot Bitcoin ETFs are from issuers including BlackRock, Ark Invest, Grayscale, VanEck, Bitwise, Fidelity, Hashdex, WisdomTree, Invesco Galaxy, Franklin, and Valkyrie. The Winklevoss twins were the first to file with the SEC for an investment fund based on their substantial Bitcoin holding in 2013. The commission officially approved the applicants’ 19b-4 and S1 filings on Wednesday.
Cboe Global Markets announced that six spot Bitcoin (BTC) exchange-traded funds will be listed and commence trading on its stock exchanges on Thursday. The approved ETFs to start trading are Ark 21 (ARKB), Fidelity (FBTC), Franklin Templeton (EZBC), Invesco (BTCO), VanEck (HODL), and WisdomTree (BTCW).
14 ETF issuers, including major financial institutions like BlackRock, Fidelity, Invesco & Galaxy, ARK & 21Shares, VanEck, WisdomTree, Valkyrie, Hashdex, Franklin Templeton, Bitwise, 7RCC, Grayscale, Global X, and Pando, have submitted applications to launch spot Bitcoin ETFs in recent months.
A spot Bitcoin ETF involves actual Bitcoin, reducing supply from the market, while a Bitcoin futures ETF tracks the price of Bitcoin through futures contracts. Institutional investors such as pension and insurance funds, typically conservative, will now have a way to add exposure to Bitcoin through these SEC-approved vehicles without having to custody BTC themselves. This mainstream adoption is expected to further legitimize cryptocurrencies.
The US is the ninth country to approve spot Bitcoin ETFs, joining Canada, Germany, Brazil, Australia, Jersey, Switzerland, Liechtenstein, and Guernsey. VanEck anticipates inflows of over $2.4 billion into spot Bitcoin ETFs in Q1 2024 if approval is granted at the beginning of the year. Bitwise predicts that within five years, spot Bitcoin ETFs in the United States will hold $72 billion in assets under management.
With Bitcoin ETFs now approved, the focus shifts to the potential of an Ethereum ETF, considering Ethereum’s position as the second largest cryptocurrency behind Bitcoin. BlackRock and Fidelity have previously filed for spot ether ETFs. The approval of Bitcoin ETFs paves the way for further crypto asset adoption through regulated investment vehicles in the US.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇦 🇩🇪 🇧🇷 🇦🇺 🇯🇪 🇨🇭 🇱🇮 🇬🇬 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | Global X, US Securities and Exchange Commission, Cboe Global Markets, BlackRock, 21Shares, Hashdex, VanEck, Ark Invest, Bitwise, Fidelity, Invesco Galaxy, Franklin, Valkyrie, Pando, 7RCC, Grayscale, WisdomTree |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
