Having BTC Spot ETF approved by the SEC on 10th January 2024 is a new paradigm shift in the crypto market. Since the launch of the first cryptocurrency BTC (Bitcoin), we have seen some institutional adoption, however, there has been regulator pushback, especially in the US under the leadership of Gary Gensler, whose mission was to tame the wild west of digital assets.
Now, that BTC Spot ETF has been approved, what is its benefit to the crypto community?
Bitcoin In 2023
Following the blockchain data firm Glassnode review, BTC in 2023 was the major asset on both an absolute and risk-adjusted basis. It was revealed that BTC spiked more than 172%, and experienced less than 20% correction which resulted in net capital inflows into BTC, ETH, and stablecoins, and then an ascendant Bitcoin dominance occurred.
What Is Even This BTC Spot ETF?
A typical understanding of BTC Spot ETF is to start with the exchange-traded fund. The overview of this is a highly liquid fund that changes price throughout the trading day, just like what is called a stock. The approval received from SEC to trade BTC Spot ETF on major exchanges is the first of its kind in the crypto market, however, other funds are set to trade the price of BTC through other means.
You must have heard of ProShares Bitcoin Strategy ETF (BITO). Here, people can invest in Bitcoin futures, but this is not Bitcoin itself.
There are Top 11 spot Bitcoin ETFs approved with expense ratio. They are:
Bitwise Bitcoin ETF (BITB) with a fee of 0.20%. There is a Fee waived for the first six months of trading or the first $1 billion in fund assets, whichever comes first.
Ark 21Shares Bitcoin ETF (ARKB) with a fee of 0.21%. The same waived as of BITB is applicable here.
iShares Bitcoin Trust (IBIT) with a fee of 0.25%. This comes with a Fee reduced to 0.12% for the first 12 months of trading or the first $5 billion in fund assets, whichever comes first.
VanEck Bitcoin Trust (HODL) with a fee of 0.25%. Here no waiver.
Fidelity Wise Origin Bitcoin Fund (FBTC) with a fee of 0.25%. The waiver here is expected to come Aug. 1, 2024.
Franklin Templeton Digital Holdings Trust (EZBC) with a fee of 0.29% and no waiver.
WisdomTree Bitcoin Fund (BTCW) with a fee of 0.30%. The same waived as of BITB is applicable here.
Invesco Galaxy Bitcoin ETF (BTCO) with a fee of 0.39%. This comes with a Fee waived for the first six months of trading or the first $5 billion in fund assets, whichever comes first.
Valkyrie Bitcoin Fund (BRRR) with a fee of 0.80% and no waiver.
Hashdex Bitcoin ETF (DEFI) with a fee of 0.90% and no waiver.
Grayscale Bitcoin Trust (GBTC) with a fee of 1.50% and no waiver.
Positivity In the Crypto Market Especially Bitcoin
A lot of speculations around the approval of BTC Spot ETF before and after the approval. The first advantage sighted around this approval is accessibility to trade Bitcoin by accounts that can’t easily access Bitcoin initially. The approval with allow investors to allocate funds going forward and this will increase the demand for BTC in coming the years.
Does this guarantee the inflow of dollars into the crypto market? The answer to this question for me is under probability, however, an expectation of many is an inflow of dollars into the crypto market and BTC has started to see changes in its price action. Hopefully, BTC will see an ATH of $100K this time.
Call To Action
With the Bitcoin ETF approved and considering those on the Hive platform earning Hive tokens for free, will surely benefit from a cheaper/free entry to the crypto world, and is high time to spread news about Social Finance to welcome many into the space.
For slower growth on Hive, one can post content to earn crypto or get in fully by purchasing more HIVE and HBD from the market to engage in delegation and HBD saving that gives up to 20% APR.
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