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| Image Credit: FXGT |
The US Securities and Exchange Commission (SEC) has approved the country's first regulated spot Bitcoin exchange-traded funds (ETFs).
Announced on 10th January, the SEC's decision marks a
significant milestone, allowing the listing and trading of spot Bitcoin ETFs on
US exchanges.
SEC Chair Gary Gensler highlighted this as an opportunity for
investors to access digital asset investments within a regulated environment.
This approval introduces the first regulated US
exchange-traded product offering direct exposure to Bitcoin's price,
eliminating the need for investors to purchase or self-custody Bitcoin.
Instead, they can buy shares in ETFs with Bitcoin as the underlying asset.
Here are the key points
from the decision:
·
Historic approval: SEC approves the first US spot
Bitcoin ETFs, a major development in digital asset investment.
The approved ETFs are by: Bitwise
(BITB), Grayscale (GBTC), Hashdex (DEFI), BlackRock (BTCR), Valkyrie (BRRR),
Ishares (IBIT), Invesco (BTCO), VanEck (HODL), WisdomTree (BTCW), Fidelity
(FBTC), and Franklin (EZBC).
Direct Bitcoin exposure: Investors
gain direct access to Bitcoin’s price through regulated ETFs, avoiding the need
for direct purchase or custody.
·
Influence of Grayscale's legal
victory: The
approval follows Grayscale's court win, prompting the SEC to reevaluate its stance
on Bitcoin ETF applications
·
Anticipated market impact: Industry anticipates the start of
trading for the newly approved spot Bitcoin ETFs, with potential inflows
estimated at $14 billion in the first year.
bullet Fee structures revealed:
Issuers like BlackRock have announced their fee rates, with BlackRock charging
0.2% until $5 billion AUM is reached.
·
Bitcoin price holds steady: Following the ETF approval, the
cryptocurrency maintained its price, fluctuating around the $46,000 level.
·
Ethereum (ETH) surges: Second-largest crypto jumps 15%,
surpassing $2,600 for the first time in 20 months, amidst focus on pending
spot-based ether ETF applications.
This decision is a turning point for Bitcoin investment in
the US, with more developments expected as the situation evolves.
