Crypto history has been cemented, and the United States Securities and Exchange Commission has finally approved Spot BTC ETF. This news caused Bitcoin prices to jump 7% amid the jubilation.
The good news doesn’t stop there, though, as some Bitcoin ETFs are already on the market. As you’ve guessed, some pretty exciting things have already happened, and it’s only January. We want to keep you updated, so strap your seat belt and prepare for the ride.
SEC Approves First Spot Bitcoin ETFs for Trading
After nearly a decade of fighting cryptocurrencies and cryptocurrency creators, the US Securities and Exchange Commission (SEC) has approved something in their favor. On January 10, 2024, the guard dog of securities gave the green light for Exchange-Traded Funds (ETFs) to track Bitcoin. This might not look like a big deal if you don’t know these guys, but it’s like Tom giving Jerry a free pass.
Read More: Bitcoin Critically Fell After the ETF Approval. What’s Next?
Bitcoin ETFs were something that many people were prepared to fight a long and bitter war to achieve. However, the victory didn’t come easy. It came after a tedious 24 hours of going back and forth on differing opinions, but success was achieved.
The first instance of this news came around 4 p.m. on Tuesday, from a tweet on the official SEC account. Naturally, there was lots of joy and jubilation, and the price for Bitcoin shot up by almost $1000, so everyone was happy.
Of course, the SEC had to spoil the mood by saying that their account had been compromised and that the news wasn’t authorized. Nonetheless, they made everything official on Wednesday, and Spot Bitcoin ETF was officially a thing.
However, this little interlude doesn’t mean the SEC has approved bitcoin trading or cryptocurrencies. Agency chairman Gary Gensler and Commissioner Caroline Crenshaw have expressed their dissent, as usual.
SEC’s Decision Expands Bitcoin Exposure Options for Investors
SEC made an unexpected move this January, making Bitcoin available to the ordinary investor. Many people are now wondering if they will jump on the crypto bandwagon.
Of course, they are. After all, you can expect people who profit from price fluctuations to run away from a commodity built around that concept. So, average investors would have gotten their hands on some bitcoins if it was so easy to get.
Nonetheless, with the new initiative, people with 401K and IRA accounts can now invest in Bitcoin. Super cool, right?
What is a Bitcoin ETF?
It wouldn’t do to continue with the juicy news without explaining what Bitcoin ETF is. Don’t worry; it isn’t anything complex, as you’ll understand it easily when you combine Bitcoin + ETF.
So, a recap of some basic terms is in order. Bitcoin is the first digital coin. It’s the cryptocurrency that made instant payments possible using its unique peer-to-peer technology.
An ETF is a fund that allows people to track the movements of assets that they’re connected to. In this case, the assets could be gold, currencies like the dollar or euro, other precious metals, and now, Bitcoin.
The beauty of an ETF is that it allows you to trade assets you may not directly own. It’s like making money off your neighbor’s racehorse when you make the right bets at the race track.
Hence, BTC ETF is an exchange-traded fund that holds a large amount of bitcoin, allowing it to track its price. This ETF lets people who don’t own Bitcoin (since it’s currently pricy) to trade it. So, if you can’t buy Bitcoin, Bitcoin ETFs are a good alternative.
What Do Bitcoin ETFs Mean for Crypto Investors?
Now that the SEC approves spot BTC ETF, how will it affect crypto investors? We’ve already covered how regular investors might be expected to react, and now it’s time to talk about crypto investors.
For Bitcoin investors, the approval of spot Bitcoin ETF is just the start of something greater. With a BTC ETF, there’ll surely be an ETH ETF and many more will follow. After all, other cryptocurrencies have achieved the same credibility as BTC over the years.
That’s not even the good part. With this approval from the SEC, many cryptocurrencies that aren’t yet distributed in the US can get in. So, you can expect many more digital assets to pop up this year.
A spot BTC ETF means that cryptocurrencies are finally getting the justice they deserve and that justice is credibility. The SEC’s war with digital assets over the years has affected how prospective investors view them. Many of them have even started to believe that digital coins are unsafe, and of course, that’s not true.
So, with this approval, you can expect many more Bitcoin investors to appear on the scene. It’ll be easier for these investors to invest in the market, as they only need to purchase ETFs to trade crypto. They won’t need to worry about hot wallets, private keys, public addresses, and other confusing jargon.
How Does Spot Bitcoin ETF Approval Impact on Bitcoin Price?
Bitcoin price has been on a plunge to Davy Jones’s locker for years. Finally, it is time it rises again and assumes its place among the most profitable investments.
BTC price was at a record low of $16,000 in November 2023. After the SEC announcement in 2024, its price has risen to $46,500. Analysts have also said some pretty sweet things about the future price of BTC.
James Lawrence from NFTY Labs expects the price for Bitcoin to reach $100,000 in the future. Standard Chartered analysts are also singing the same sweet music. They believe ETFs could draw up to $50 billion this year and allow people to sell Bitcoin at $100,000.
So, if you’ve been debating investing in Bitcoin, this might be your sign from heaven.
Top 11 Spot Bitcoin ETFs
With open doors on the horizon, 10 savvy Bitcoin ETF issuers had filed forms with the SEC earlier. They disclosed the amount they intended to charge for their ETFs in those forms as they awaited the good news. Hashdex also applied to hold Spot Bitcoin ETF, bringing this number to 11.
Of course, this is just the start, as ETF forms are already flooding the SEC coffers right now. Many of them are even offering promotional fee waivers and slashing their prices. Nonetheless, the top 11 Bitcoin ETFs for now are:
| S/N | ETF Name | ETF Symbol | Fee | Promotion |
| 1 | Bitwise Bitcoin ETF | BITB | 0.20% | Fees are waived for the first $1 billion in fund assets or the first six months of trading. Whichever one comes first. |
| 2 | Ark 21Shares Bitcoin ETF | ARKB | 0.21% | Fees are waived for the first $1 billion in fund assets or the first six months of trading. Whichever one comes first. |
| 3 | iShares Bitcoin Trust | IBIT | 0.25% | Fees are reduced by 0.12% for the first $5 billion in fund assets or the first twelve months of trading. Whichever one comes first. |
| 4 | VanEck Bitcoin Trust | HODL | 0.25% | N/A |
| 5 | Fidelity Wise Origin Bitcoin Fund | FBTC | 0.25% | Transaction fees are waived until August 1, 2024. |
| 6 | Franklin Templeton Digital Holdings Trust | EZBC | 0.29% | N/A |
| 7 | WisdomTree Bitcoin Fund | BTCW | 0.30% | Fees are waived for the first $1 billion in fund assets or the first six months of trading. Whichever one comes first. |
| 8 | Invesco Galaxy Bitcoin ETF | BTCO | 0.39% | Fees are waived for the first $5 billion in fund assets or the first six months of trading. Whichever one comes first. |
| 9 | Valkyrie Bitcoin Fund | BRRR | 0.80% | N/A |
| 10 | Hashdex Bitcoin ETF | DEFI | 0.90% | N/A |
| 11 | Grayscale Bitcoin Trust | GBTC | 1.50% | N/A |
Conclusion
Although it’s still January, this crypto ETF is already one of the biggest things that’ll happen in the cryptocurrency space this year. It’ll bring more crypto investors and garner positive public attention. It might just offset a wave of crypto ETFs in the market soon.
Read More on Bitcoin:
- Fake Bitcoin ETF Tweet Triggers SEC and Twitter Investigations
- Bitcoin Has Gained Legality Within Honduras
- Spot Bitcoin ETFs Debut with $4.6 Billion Trading Volume, But Zero Inflows
Now, this is some good news, but that doesn’t change the fact that digital coins are volatile. Most ETF investments today come from American retirement accounts, and a bad price fluctuation could usher in another Great Depression. Okay, that last part might be an overstatement.
Regardless, spot Bitcoin ETF represents a great investment opportunity. As long as investors are savvy when making this move, they’ll be fine.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL.FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL.FM strongly recommends contacting a qualified industry professional.