In a historic moment for Bitcoin, the first ever spot Bitcoin ETFs have been officially approved to list on major United States stock exchanges.
What’s happening:
- The United States Securities and Exchange Commission has approved the first ever spot Bitcoin ETFs in a landmark decision
- The new approval will allow the first 11 Bitcoin ETFs to officially list on major United States stock exchanges
Why it matters:
- The approval of a spot Bitcoin ETF has been one of the most anticipated catalysts for crypto, as it represents a brand new access point for institutional capital to be able to allocate to Bitcoin as an asset class
- Spot Bitcoin ETFs are expected to have a significant impact on the supply and demand dynamics of Bitcoin, as each individual ETF is being seeded with significant capital
By the numbers:
- 11 spot Bitcoin ETFs have been approved to list, including Bitwise, Grayscale, BlackRock, VanEck, Fidelity and more
- Bitwise has already disclosed $200M USD in initial seed funding for their Bitcoin ETF
- VanEck has publicly stated they expect to see $1B USD of capital within the first few days of listing
Going deeper:
- This approval comes just shortly after many Bitcoin miners have had record shattering months for revenue
- Coinbase (NASDAQ: COIN) will act as a custodian for many of the new spot Bitcoin ETFs
The intrigue:
- Due to the highly competitive landscape for Bitcoin ETFs, many asset management companies including Invesco and Galaxy Digital (TSX: GLXY) are offering to waive all fees until they hit certain capital thresholds in order to help attract new investors
