In a historic move, the Securities and Exchange Commission (SEC) has given the green light to several applications for Bitcoin spot exchange-traded funds (ETFs). This approval allows these funds to be listed and traded on major US stock exchanges. This is the first instance of the SEC approving funds that directly hold Bitcoin, as opposed to futures contracts linked to the cryptocurrency. After a decade of rejecting numerous applications, the SEC has now paved the way for direct Bitcoin investment vehicles for both retail and institutional investors.
The approval has opened the floodgates for fund providers to introduce spot Bitcoin ETFs to the market. Several asset managers, including industry heavyweights like BlackRock, Fidelity, and ARK Invest, have applications already filed with the SEC. With Bitcoin trading around $46,000 on Tuesday, the first movers are keen to capitalize on the high investor demand.
Industry analysts widely anticipate spot Bitcoin ETFs to witness massive inflows from both cryptocurrency enthusiasts and traditional investors seeking Bitcoin exposure. VanEck estimates that over $2.4 billion will flow into spot Bitcoin ETFs in the first quarter of 2024 alone. In five years, Bitwise predicts these funds may hold up to $72 billion in total assets.
These optimistic projections are based on the enthusiastic response that Bitcoin futures ETFs received when they were launched last year. The ProShares Bitcoin Strategy ETF (BITO) attracted $1.5 billion in just one month post-launch.
However, some analysts warn that the hype leading up to SEC approval may result in a “sell the news” pullback for Bitcoin prices in the near term. The launch of previous Bitcoin investment vehicles, like CME futures and the Coinbase direct listing, were followed by sharp cryptocurrency declines as investors took profits.
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 | Bitwise, BlackRock, Securities and Exchange Commission, CME, VanEck, ProShares, Coinbase, ARK Invest, Fidelity |
| Currencies | Bitcoin |
| Securities | None |
