Spotlight on Bitcoin Spot ETF: The Approved Candidates
Entering a New Era of Bitcoin Investment
The financial and crypto worlds marked January 10th, 2024, as a red-letter day as the SEC approved 11 Bitcoin Spot ETFs. This milestone heralds a new era for Bitcoin, blending the digital currency with traditional investment methods.
Who Made the SEC’s Cut for Bitcoin Spot ETF?
The eagerly anticipated announcement from the SEC has validated applications from funds like BlackRock and Grayscale to launch Bitcoin Spot ETFs. These funds will allow clients to invest in Bitcoin as easily as they would in stocks, using an ETF based on the asset’s value. This move is set to have a significant long-term impact on the crypto markets.
BlackRock iShares Bitcoin Trust Takes the Lead
BlackRock’s iShares Bitcoin Trust (IBIT) is the most anticipated among the candidates. As the world’s largest asset manager, BlackRock’s entry into the Bitcoin market is poised to have a monumental impact. Even a small percentage of its managed assets shifting towards Bitcoin could send the cryptocurrency’s price soaring.
Grayscale Bitcoin Trust: The Veteran Player
Grayscale has been a pioneer in Bitcoin investment since 2013. With its Grayscale Bitcoin Trust (GBTC), the fund holds a substantial 3.16% of all Bitcoins in circulation, representing a significant presence in the market.
Fidelity Wise Origin Bitcoin Fund: A New Contender
Fidelity, with its extensive experience in digital assets, is another major player. Their Fidelity Wise Origin Bitcoin Fund, backed by years of cryptocurrency investment, is expected to stand out in the new ETF market.
Other approved ETFs include Bitwise Bitcoin ETF, known for its crypto focus and attractive fee structure, and Hashdex Bitcoin ETF, which converts its existing Bitcoin ETF Futures. Valkyrie Bitcoin Fund, ARK 21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Fund, and Franklin Bitcoin ETF are also among the approved entities, each bringing unique strengths to the market.
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