Spot Bitcoin ETFs Receive Approval, Trading to Begin Soon
According to Bitwise CIO Matt Hougan, spot bitcoin ETF applicants have had their S-1 forms go effective, meaning that trading of these products can start as early as tomorrow.
Final versions of the prospectuses are now available on the SEC’s website, including BlackRock’s iShares Bitcoin (BTC) ETF and Ark Invest/21Shares.
The timing aligns with Grayscale’s earlier announcement that it expected the SEC to declare its Form-3 registration statement effective at 5pm ET.
Bitwise has confirmed that its Bitwise Bitcoin ETF will start trading on January 11.
“We expect significant demand for bitcoin ETFs like BITB,” said Bitwise CEO Hunter Horsley. “Now, at long last, a spot bitcoin ETF is arriving.”
SEC Approves Multiple Spot Bitcoin ETFs
All 11 spot bitcoin ETFs proposed by various companies have received approval from the SEC. The approved applicants include Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin.
In a speech by Chair Gary Gensler, he confirmed the approvals but cautioned investors about the risks associated with bitcoin and crypto-linked products.
Valkyrie and VanEck Expect Trading to Begin Soon
Valkyrie Investments and VanEck have both stated that they anticipate trading of their spot bitcoin ETFs to begin soon. Valkyrie co-founder and CIO Steven McClurg expects significant inflows of funds into Valkyrie’s ETF. VanEck estimates billions of dollars flowing into their products within the first few days and quarter.
Market Projections for Spot Bitcoin ETFs
Growth projections for spot bitcoin ETFs are optimistic. Galaxy anticipates inflows of $14 billion within the first year, while Bitwise estimates the market for spot bitcoin ETFs to reach approximately $72 billion within five years.
Fees and Discounts
The sponsor fee of each product may influence where funds flow. Currently, Bitwise offers the cheapest ETF with a fee of 0.2%. Other issuers like Ark/21Shares and BlackRock also offer competitive fees. Some firms are offering discounts or zero fees for the first billions of dollars of inflows.
Final Adjustments Made to Address SEC Concerns
Applicants made multiple amendments to their spot bitcoin ETF applications to address SEC concerns regarding creation and redemption models, authorized participants, and managing hard forks and airdrops.
Hot Take: Spot Bitcoin ETFs Approved, Opening New Investment Opportunities
The approval of spot bitcoin ETFs by the SEC marks a significant milestone in the cryptocurrency industry. With trading set to begin soon, investors now have more accessible ways to enter the bitcoin market. The demand for these ETFs is expected to be high, especially among financial advisors and investment professionals who prefer this investment vehicle. However, it’s important to remain cautious as Chair Gary Gensler warns about the risks associated with bitcoin and crypto-related products. As the market opens up to spot bitcoin ETFs, it will be interesting to see how they perform and whether they meet the projected growth figures.
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