The crypto market is brimming with anticipation as the United States Securities and Exchange Commission (SEC) edges closer to the January 2024 deadline for deciding on a series of spot Bitcoin ETFs (Exchange-Traded Funds) applications.
This pivotal moment could potentially reshape how investors interact with Bitcoin. Consequently, it offers a regulated and more accessible avenue for exposure to this digital asset.
Understanding Bitcoin ETFs
Bitcoin ETFs, akin to traditional ETFs, offer investors an opportunity to invest in Bitcoin without the complexities of direct ownership, such as managing crypto wallets or navigating crypto exchanges. They track the performance of Bitcoin, providing a more straightforward and regulated approach to investing in this cryptocurrency.
Investing in Bitcoin ETFs offers several advantages, including accessibility, convenience, diversification, liquidity, and professional management. However, they also carry counterparty risk, liquidity risk, market volatility, and regulatory uncertainty, especially considering new regulations in the US.
The potential approval of Bitcoin ETFs is expected to broaden the investor base for Bitcoin, possibly leading to increased adoption and price stability. This comes amid a recovering crypto market, with Bitcoin trading over $42,000 in early December.
“We expect more than $2.4 billion will flow into newly approved US spot Bitcoin ETFs in Q1 2024 to keep the Bitcoin price elevated. Notwithstanding the possibility of significant volatility, the Bitcoin price is unlikely to fall below $30,000 in Q1 2024.” Matthew Sigel, VanEck’s Head of Digital Assets Research, wrote.
Sponsored
Sponsored
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
The decision by the SEC is therefore highly anticipated, as it could significantly influence future regulations and investment trends in the cryptocurrency space.
The significance of the January 2024 deadline is profound. With over ten Bitcoin ETF applications submitted, including those from industry giants like BlackRock, Fidelity, and Invesco, the SEC’s decision will have far-reaching implications.
It will affect individual applications and set a precedent for future crypto-related financial products. The SEC’s potential approval of these applications is seen as a step towards broader adoption of Bitcoin and a significant move in mainstream financial markets.
“An approved Bitcoin ETF has the potential to fuel institutional investment and usher in a transformative era for crypto. Such an ETF would provide a regulated and familiar investment vehicle for institutional investors, mitigating their concerns about liquidity, custody, and regulatory uncertainty,” Lucas Kiely, chief investment officer at Yield App, told BeInCrypto.
Bitcoin ETF Deadlines to Watch
Sponsored
Sponsored
The list of pending Bitcoin ETF applications is extensive, with deadlines spanning from early to late January 2024:
Institution
Ticker
Entity AUM
Expected Response Date
Final Deadline
Status
Grayscale
GBTC
$46.10 billion
Between January 5 and January 10, 2024
January 1, 2024
Updated their S-1 filings with the SEC on December 2, 2023
ARK and 21Shares
ARKB
$6.70 billion
Between January 5 and January 10, 2024
January 10, 2024
Updated their S-1 filings with the SEC on December 4, 2023
Bitwise
BITB
$1 billion
Between January 5 and January 10, 2024
January 14, 2024
Updated their S-1 filings with the SEC on December 4, 2023
Blackrock (iShares)
IBTC
$9.42 trillion
Between January 5 and January 10, 2024
January 15, 2024
Updated their S-1 filings with the SEC on October 30, 2023
VanEck
N/A
$76.40 billion
Between January 5 and January 10, 2024
January 15, 2024
Updated their S-1 filings with the SEC on November 17, 2023
WisdomTree
BTCW
$97.50 billion
Between January 5 and January 10, 2024
January 15, 2024
Updated their S-1 filings with the SEC on October 18, 2023
Invesco Galaxy
BTCO
$1.50 trillion
Between January 5 and January 10, 2024
January 15, 2024
Listing appeared on the DTCC website on November 1, 2023
Fidelity (Wise Origin)
N/A
$4.50 trillion
Between January 5 and January 10, 2024
January 15, 2024
Updated their S-1 filings with the SEC on October 30, 2023
Valkyrie
BRRR
$1.40 billion
Between January 5 and January 10, 2024
January 17, 2024
Updated their S-1 filings with the SEC on December 2, 2023
Global X
N/A
$46 billion
Between January 5 and January 10, 2024
February 19, 2024
Updated their S-1 filings with the SEC on November 15, 2023
Hashdex
DEFI
$494 million
Between January 5 and January 10, 2024
March 31, 2024
Updated their S-1 filings for Trust to ETF conversion with the SEC on November 24, 2023,
Franklin Templeton
N/A
$1.50 trillion
Between January 5 and January 10, 2024
March 31, 2024
SEC initiates commenting window on November 28, 2023
Pando Asset
N/A
$30 million
Between January 5 and January 10, 2024
Unknown
SEC initiates commenting window on Nov 28 2023
These dates are crucial for investors and the cryptocurrency community, representing the SEC’s final decision points for these high-profile applications.
The Role of BlackRock
Among the applicants, BlackRock, the world’s largest asset manager with a staggering $9.42 trillion in assets under management, stands out. Its partnership with Coinbase and an impressive track record of successful ETF applications with the SEC make it a strong contender in the race for Bitcoin ETF approval.
A positive outcome for BlackRock could be a significant catalyst for Bitcoin’s price, potentially propelling it to new heights.
“When [BlackRock] filed [for a spot Bitcoin ETF], it was a whole different ballgame in my opinion. The fact is they generally like to bring a gun to a knife fight. This is a firm who doesn’t like to lose, who knows what they’re doing, and they must see something [in Bitcoin],” Eric Balchunas, an analyst at Bloomberg, emphasized.
As the January 2024 deadline approaches, the cryptocurrency market is on the cusp of a potentially transformative phase. The SEC’s decision on Bitcoin ETFs will impact investors and play a crucial role in shaping the future of crypto regulations and investments.
Whether these ETFs get the green light or face rejection, their fate will leave an indelible mark on the cryptocurrency market and investment strategies in the digital age.
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.
On the 10th of January 2024, the U.S. Securities and Exchange Commission (SEC) approved the launch of several spot Bitcoin ETFs in the US. This was a monumental decision – Grayscale Investments had first filed to convert their spot Grayscale Bitcoin Trust into an ETF back in October 2021.
Statement on the Approval of Spot Bitcoin Exchange-Traded Products. Accessed Jan 10, 2024. . In total, the SEC approved 11 spot Bitcoin ETFs, and 10 of them started trading on Thursday, Jan. 11.
The U.S. Securities and Exchange Commission (SEC), the agency responsible for regulating the securities markets and protecting investors in the U.S.A, granted approval to 11 spot Bitcoin exchange-traded funds (ETF), in its Approval Order on 10 January 2024.
The SEC had a deadline of January 10 to offer a decision for just one of the 11 firms that applied to offer bitcoin ETFs. On Wednesday it offered approval to all 11 of them. Bitcoin, the leading cryptocurrency, has a current market cap of roughly $900 billion.
Spot bitcoin ETFs are a new class of investments that allows investors to invest in bitcoin at their convenience with far less risk. They are available through retirement accounts, and on automated investing platforms (robo-advisors), and online brokerages during open market hours, but not on crypto exchanges.
There will probably be litigation against the SEC after May if ether ETFs aren't approved, the report said. JPM says the odds of a spot ether ETF approval in May are still no more than 50%. There will likely be litigation against the SEC if the regulator doesn't approve the products in May, the report said.
Cathie Wood Sees Bitcoin Price Reaching $1.5M by 2030 After ETF Approval. ARK Invest's CEO previously predicted the price would reach $1 million by 2030.
Since bitcoin has failed to function as an effective 'store of value' and generates no cash flow at the moment, it remains purely a speculative asset, which makes it inconsistent with Vanguard's principles and ethos. Finsum: Vanguard is not offering a bitcoin ETF, unlike many of its major competitors.
The SEC has previously rejected all spot bitcoin ETF proposals over fears of market manipulation. Accounts on X, like accounts on other social media platforms, are sometimes hijacked by stealing passwords or tricking targets into giving up their login credentials.
Investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods. In addition, the regulatory landscape for crypto is evolving, and changes in regulations will undoubtedly impact the performance and availability of these ETFs.
If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.
Ten years after the first spot Bitcoin exchange-traded fund application was filed in the U.S., the Securities and Exchange Commission (SEC) finally approved spot Bitcoin ETFs on January 10, 2024.
The U.S. Securities and Exchange Commission is more likely now to approve so-called 19b-4 applications for spot ether ETFs later this week, said ETF analysts at Bloomberg Intelligence. Bloomberg analysts raised the odds of approval to a 75% chance, a dramatic increase from a 25% chance previously.
An exchange-traded product (ETP) is a general term for assets that can be bought and sold on traditional financial markets like a stock. Exchange-traded funds (ETFs) are a particular type of ETP that is designed to track the value of a particular pool of assets, such as stocks and bonds.
ARKB has a 0.21% expense ratio, which is lower than IBIT's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
A 3x Bitcoin ETF aims to offer investors the opportunity to leverage their investment, amplifying the potential returns or losses to three times the performance of the Bitcoin index or benchmark it follows.
BlackRock's iShares Bitcoin BTC -1.37% Trust (IBIT) spot bitcoin exchange-traded fund (ETF) is a financial product allowing investors to gain exposure to bitcoin's price movements without owning the cryptocurrency itself.
A spot bitcoin ETF, or spot cryptocurrency ETF, refers to an ETF that invests directly in bitcoin or other cryptocurrencies, as opposed to investing in derivatives, such as futures. Spot bitcoin ETFs are available at Schwab.
To illustrate our Bitcoin price prediction, consider a scenario where interest rates are cut to below 3% and a spot Ethereum ETF follows Bitcoin ETF's inflows. Coupled with a push for crypto-friendly regulations, we might see Bitcoin pass the $120,000 mark by the end of 2025.
Our most recent Bitcoin price forecast indicates that its value will increase by 13.63% and reach $72,803 by June 23, 2024. Our technical indicators signal about the Bearish Bullish 41% market sentiment on Bitcoin, while the Fear & Greed Index is displaying a score of 63 (Greed).
As of June 7, 2024, BTC is trading at $71,166 with a market capitalization of $1.40 trillion. The price of the popular cryptocurrency has slid by 3.56% after setting a new record of $73,750, with a market capitalization reaching $1.44 trillion on March 14, 2024.
Introduction: My name is Rev. Leonie Wyman, I am a colorful, tasty, splendid, fair, witty, gorgeous, splendid person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
