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 set to usher in a surge of institutional investment.
In 2013, the Winklevoss twins were the pioneers in filing with the SEC for an investment fund based on their significant Bitcoin holdings. The commission officially approved the applicants’ 19b-4 and S1 filings on Wednesday.
Cboe Global Markets announced today that six spot Bitcoin (BTC) exchange-traded funds will be listed and commence trading on its stock exchanges on Thursday. The six Bitcoin ETF applicants approved to start trading tomorrow are Ark 21 (ARKB), Fidelity (FBTC), Franklin Templeton (EZBC), Invesco (BTCO), VanEck (HODL), and WisdomTree (BTCW).
14 ETF issuers, including major financial institutions such as 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, including typically conservative pension and insurance funds, will now have a means 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, assuming approval is granted at the start 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, given 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 | 7RCC, Global X, US Securities and Exchange Commission, Cboe Global Markets, BlackRock, Invesco, Hashdex, VanEck, WisdomTree, Fidelity, Bitwise, Valkyrie, Pando, Invesco & Galaxy, ARK & 21Shares, Ark 21, Grayscale, Franklin Templeton |
| Currencies | Ethereum, Bitcoin |
| Securities | Fidelity (FBTC), Franklin Templeton (EZBC), VanEck (HODL), ARK 21 (ARKB), Invesco (BTCO) |
