Key takeaways:
- The US Securities and Exchange Commission has approved all 11 spot Bitcoin Exchange Traded Funds (ETF), as per the statement on Wednesday.
- The SEC’s approval of a noteworthy list of Bitcoin ETFs signals an important change in the crypto market.
The US Securities and Exchange Commission (SEC) has approved spot Bitcoin Exchange Traded Funds (ETF) of VanEck, Bitwise, Fidelity, Franklin, Valkyrie, Hashdex, Ark Invest, Grayscale, BlackRock, WisdomTree, and Invesco Galaxy, according to a statement on Wednesday.
Over the last few months, the digital asset market has been waiting impatiently for a verdict on Spot Bitcoin ETFs. In an effort to offer the investment product, over a dozen companies submitted applications to the US Securities and Exchange Commission (SEC). As of today, 10 days into the new year, all Spot Bitcoin ETFs have received SEC approval.
Clearly, this is a historic moment for the industry with these approvals. As a result, asset management companies such as Valkyrie, BlackRock, and Grayscale will be able to lead their own exchange-traded funds that are specifically focused on Bitcoin.
The SEC’s approval of a noteworthy list of Bitcoin ETFs signals an important change in the crypto market.
BlackRock is in the lead with its iShares Bitcoin Trust (IBIT), which received approval after paying a 0.25% initial fee. BlackRock is attempting to establish itself as a significant player in the developing Bitcoin ETF market by announcing an additional lower cost of 0.20% for the first $5 billion in assets during the first year of operation.
Additionally, Grayscale Investments’ Grayscale Bitcoin Trust (GBTC) has been approved. The company has chosen to transform GBTC into a Spot Bitcoin ETF, charging a 1.5% starting fee.
Meanwhile, Fidelity has joined the market with its Wise Origin Bitcoin Trust (FBTC), receiving SEC approval and disclosing 0.39% in fees.
Some exciting additions are the joint venture of Ark Invest and 21 Shares, which is the ARK 21Shares Bitcoin ETF (ARKB), which has a 0.25% fee. Interestingly, the company announced that fees will not be charged during the first six months or the first $1 billion in assets.
In order to navigate this changing financial landscape, VanEck, Valkyrie Digital Assets, Invesco Galaxy, Franklin Templeton Digital Holdings, Bitwise Asset Management, Hashdex, and WisdomTree have all obtained approval for their respective Bitcoin ETFs. Each of these companies offers distinct fee structures and waiver details.
Trading is scheduled to commence following SEC approval for these Spot Bitcoin ETF issuers. As previously reported, trade might start on Thursday morning.
Furthermore, the trend should result in significant increases in the price of Bitcoin and other assets.
As mentioned before, this choice is revolutionary for the sector. With the release of the Spot ETF, a far wider audience should adopt Bitcoin as an asset. Consequently, investment offerings may expose other digital assets to comparable risks.
