Spot Bitcoin ETFs Gain SEC Approval
The U.S. Securities and Exchange Commission (SEC) has granted approval for 11 spot bitcoin exchange-traded funds (ETFs) to be listed and traded on major U.S. stock exchanges including NYSE Arca, the Nasdaq Stock Market, and Cboe BZX Exchange. This landmark decision comes after years of anticipation and regulatory hurdles, and the spot bitcoin ETFs are expected to begin trading on Thursday.
List of Approved Spot Bitcoin ETFs
The SEC has given the green light to a range of spot bitcoin ETFs, including ARK 21shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), Vaneck Bitcoin Trust (HODL), Wisdomtree Bitcoin Fund (BTCW), Bitwise Bitcoin Trust (BITB), Ishares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Hashdex Bitcoin ETF (DEFI), and Grayscale Bitcoin Trust (GBTC).
Fierce Fee Competition Among Issuers
The recent final registration filings (S-1) by the 11 ETF applicants have revealed a competitive battle on fees. Several issuers, including Blackrock, Ark Invest, and 21shares, have slashed their fees to attract investors. Fees range from 0.20% to 1.5%, with Blackrock now offering a fee as low as 0.12% for the first $5 billion.
Spot Bitcoin ETFs Follow Cash Creation Model
All the approved spot bitcoin ETFs comply with the cash creation model, which is in line with the SEC’s preference. Ark Invest CEO Cathie Wood believes that these ETFs will have a significant impact on the price of bitcoin. Similarly, Vaneck’s digital assets director states that the long-term effects of spot bitcoin ETFs are often underestimated. Major crypto exchange Coinbase has already prepared to serve as the custodian for most U.S. spot bitcoin ETFs.
Hot Take: Spot Bitcoin ETFs Open New Doors for Crypto Investors
With the SEC approving 11 spot bitcoin ETFs for trading on U.S. stock exchanges, the cryptocurrency market is about to witness a significant development. These ETFs will provide a regulated and accessible way for investors to gain exposure to bitcoin, potentially driving up the price of the popular cryptocurrency. The fierce competition among issuers to lower fees reflects the growing interest in crypto investments. As more investors embrace spot bitcoin ETFs, the overall market adoption of bitcoin is expected to increase. This decision marks a crucial step towards mainstream acceptance of cryptocurrencies in the traditional financial sector.
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