In a significant development for the world's largest cryptocurrency and the broader cryptocurrency industry, the US Securities Commission has given the green light to the first US-listed exchange-traded funds (ETFs) that track… BitcoinAccording to Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC).
The SEC approved 11 applications, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck, among others. The products are expected to begin trading as early as Thursday, sparking fierce competition for market share.
These ETFs, which have been in the making for a decade, are a game-changer for Bitcoin. They provide institutional and retail investors exposure to cryptocurrency without having to hold it directly.
Analysts at Standard Chartered Bank predict that these ETFs could attract between $50 billion to $100 billion this year alone, which could send the price of Bitcoin soaring to $100,000. However, other analysts believe inflows will be closer to $55 billion over the next five years.
“It's very positive for the institutionalization of bitcoin as an asset class,” said Andrew Bond, managing director and chief fintech analyst at Rosenblatt Securities. “the European Training Foundation Approval will increase Bitcoin's legitimacy.”
Bitcoin price rose 3% to $47,300 following the news. The cryptocurrency has already surged more than 70% in recent months in anticipation of approval, reaching its highest level since March 2022 earlier this week. Analysts point out that success in sourcing assets for spot bitcoin ETFs will depend on fees and liquidity.
Some issuers even reduced their fees for new deposits this week to attract investors. These fees range from 0.2% to 1.5%, with some companies waiving the fee entirely for a certain period of time.
For short-term traders, liquidity is more important than fees. The more liquid ETFs are, the easier it is for investors to buy and redeem stocks at prices that closely track the actual price of Bitcoin.
Companies are also expected to market these ETFs aggressively, with a flurry of online advertising and other forms of promotion. Some issuers, such as Bitwise and VanEck, have already released ads promoting Bitcoin.
“It's pretty unprecedented, so we'll see how it goes,” Chairman Stephen McClurg said. “I've never been in a situation where 10 of the same ETFs launched on the same day, so this is a new situation.” Valkyrie chief investment officer, whose exchange-traded fund (ETF) was among those approved on Wednesday.
(With agency inputs)
The SEC approved 11 applications, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck, among others. The products are expected to begin trading as early as Thursday, sparking fierce competition for market share.
These ETFs, which have been in the making for a decade, are a game-changer for Bitcoin. They provide institutional and retail investors exposure to cryptocurrency without having to hold it directly.
Analysts at Standard Chartered Bank predict that these ETFs could attract between $50 billion to $100 billion this year alone, which could send the price of Bitcoin soaring to $100,000. However, other analysts believe inflows will be closer to $55 billion over the next five years.
“It's very positive for the institutionalization of bitcoin as an asset class,” said Andrew Bond, managing director and chief fintech analyst at Rosenblatt Securities. “the European Training Foundation Approval will increase Bitcoin's legitimacy.”
Bitcoin price rose 3% to $47,300 following the news. The cryptocurrency has already surged more than 70% in recent months in anticipation of approval, reaching its highest level since March 2022 earlier this week. Analysts point out that success in sourcing assets for spot bitcoin ETFs will depend on fees and liquidity.
Some issuers even reduced their fees for new deposits this week to attract investors. These fees range from 0.2% to 1.5%, with some companies waiving the fee entirely for a certain period of time.
For short-term traders, liquidity is more important than fees. The more liquid ETFs are, the easier it is for investors to buy and redeem stocks at prices that closely track the actual price of Bitcoin.
Companies are also expected to market these ETFs aggressively, with a flurry of online advertising and other forms of promotion. Some issuers, such as Bitwise and VanEck, have already released ads promoting Bitcoin.
“It's pretty unprecedented, so we'll see how it goes,” Chairman Stephen McClurg said. “I've never been in a situation where 10 of the same ETFs launched on the same day, so this is a new situation.” Valkyrie chief investment officer, whose exchange-traded fund (ETF) was among those approved on Wednesday.
(With agency inputs)
