Bitcoin Spot ETF- Crypto investors tracking US SEC announcements

Bitcoin Spot ETF: Crypto investors tracking US SEC announcements

The US Securities and Exchange Commission is widely expected to issue a verdict on the spot Bitcoin ETF application shortly. On Wednesday, the Securities and Exchange Commission (SEC) will determine whether to accept asset managers Ark Investments and 21Shares’ application to launch a spot bitcoin ETF. More than a dozen Bitcoin ETF applications, including those from BlackRock, Fidelity, and VanEck, are currently waiting before the SEC.

Bitcoin’s accessibility, liquidity, demand, and price are expected to be impacted positively, at least in the initial days of approval. Some analysts wonder if Bitcoin is due for a pullback if and when SEC approval is finally granted, as speculators may decide to bank profits.

Bitcoin can be purchased through various methods, including exchange purchases and investing in bitcoin futures ETFs. Futures ETFs involve contracts for bitcoin exchange at specific price points, providing price gains without holding the volatile asset.

Spot ETFs differ in that they include Bitcoin assets. Unlike futures contracts, bitcoin spot ETFs hold bitcoin as an underlying asset and track its price. Investors in these funds would be more exposed to Bitcoin’s possible unfavorable price movements while also receiving exposure to the actual asset (rather than a contract).

The products would be a game changer for Bitcoin, giving institutional and retail investors access to the world’s largest cryptocurrency without actually holding it, as well as a significant boost to a crypto industry plagued by scandals.

Viram Shah, CEO, Vested Finance says, “The much-anticipated Bitcoin ETF is expected to receive approval from SEC with subsequent trading on US markets to start this week itself.

Global fund giants such as Fidelity, BlackRock, ARK etc. have already submitted applications for their own Bitcoin ETFs. This is indeed a watershed moment for all the crypto enthusiasts across the globe. Like any other asset class, Bitcoin ETFs also come with their own sets of advantages and disadvantages.”

BlackRock would charge 0.25%, compared with the 0.30% fee set earlier. Ark Investments and 21Shares lowered their fee to 0.21% from 0.25% earlier.