Spot Bitcoin BTC is currently valued at $47,435. According to James Seyffart, a Bloomberg ETF analyst, exchange-traded funds (ETFs) are set to begin trading on Jan. 11, following the SEC’s approval of 11 spot Bitcoin ETFs. Seyffart has indicated that several S-1 prospectuses are “going effective,” which means that spot Bitcoin ETFs could start trading soon. He stated, “There are no more steps needed,” and “Everyone is gonna be ready for tomorrow.”
Before the ETFs were approved, Seyffart had predicted that a spot Bitcoin ETF would launch within “a few days” of approval. However, after the approval, he updated his statement, saying they could begin trading within the day of receiving approved S-1s. He updated his forecast once again as they began streaming in.
Historically, crypto-related ETF products have typically launched within two weeks of approval. For instance, ProShares’ Bitcoin Strategy ETF (BITO) was the first SEC-approved Bitcoin-linked ETF, which was approved on Oct. 11, 2021, and began trading eight days later on Oct. 19, 2021. Similarly, Valkyrie’s move to add Ether ETH futures to its existing Bitcoin Strategy ETF received the green light from the SEC on Sept. 28 and began trading seven days later on Oct. 5.
However, Seyffart has noted that the process for spot Bitcoin ETFs is different from futures ETFs and could theoretically take weeks, but he believes it will be days.
Global fund manager VanEck has estimated that roughly $2.4 billion would flow into spot Bitcoin products in the first quarter of 2024. Crypto investment fund Bitwise has predicted that spot Bitcoin ETFs will be “the most successful” ETF product ever launched and could capture a staggering $72 billion worth of assets under management within five years.
However, not everyone shares this optimism. VanEck adviser Gabor Gurbacs argues that the early days of Bitcoin ETFs will likely be regarded as a “let down” but could bring trillions of dollars worth of new capital into the industry in the long run.
The approval of these ETFs allows traditional financial giants, including multi-trillion-dollar firms such as BlackRock and Fidelity, to launch an investment vehicle that provides institutional investors in the United States with regulated exposure to Bitcoin for the first time in the nation’s history.
Despite speculation around the funds’ short-term performance, analysts agree that spot ETFs will be a boon for the price of Bitcoin in the long-term. Galaxy Digital, a crypto investment firm, predicted that Bitcoin will be trading at least 74% higher than it was at the start of the year. Bitcoin is currently trading at $46,410, up 1.52% from the time the ETF was approved.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | James Seyffart, Gabor Gurbacs |
| Companies | ProShares, Galaxy Digital, BlackRock, Bloomberg, VanEck, Bitwise, Fidelity, Valkyrie, Securities and Exchange Commission (SEC) |
| Currencies | Bitcoin, Lido Staked Ether |
| Securities | BITO, ETH |
