The Bitcoin ETF Approval: Full Coverage (2024)

FAQs

Is bitcoin ETF going to be approved? ›

Yes and no. There were already crypto-related ETFs and trusts out there, but there had never been a spot Bitcoin ETF on the market before the Jan. 2024 approval. These recently approved ETFs are the first cryptocurrency funds to trade on a major exchange and hold Bitcoin directly.

Ten years after the first spot Bitcoin exchange-traded fund application was filed in the U.S., the Securities and Exchange Commission (SEC) finally approved spot Bitcoin ETFs on January 10, 2024.

The U.S. Securities and Exchange Commission approved 11 bitcoin exchange-traded fund (ETF) applications. The spot bitcoin ETFs are expected to begin trading on Thursday. Spot bitcoin ETFs will help make investing in the cryptocurrency more accessible, bringing more investors and assets into the crypto space.

The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs) on January 10, 2024, marking a significant milestone in the world of cryptocurrency and investment.

Bitcoin ETF's price today is US$0.0003435, with a 24-hour trading volume of $12. ETF is -0.19% in the last 24 hours. It is currently -6.15% from its 7-day all-time high of $0.0003661, and 4.74% from its 7-day all-time low of $0.000328. ETF has a max supply of 1 B ETF.

While a spot bitcoin ETF does not directly affect the price of bitcoin, the increased demand and purchasing of bitcoin by these ETFs could boost the price over time. Lower trading fees.

Disadvantages of Crypto ETFs

1 When buying shares of an ETF, you pay your brokerage's trade fees and the fund's expense ratio. Crypto ETFs have expense ratios from 0.39% to 1.5%, much higher than the transaction fees charged by crypto exchanges. 9.

If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.

The new ETFs may be cheaper than previous fund options, such as the ProShares Bitcoin Strategy ETF (BITO) — the first bitcoin futures ETF, with an expense ratio of 0.95%. The Grayscale Bitcoin Trust (GBTC) charged 2.0% before converting to a spot bitcoin ETF, and now has fees of 1.5%.

Does Vanguard allow bitcoin ETFs? ›

Vanguard quickly made the decision to not offer a bitcoin ETF.

The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff,” an SEC spokesperson told CNBC. The false social media post said the SEC had approved bitcoin ETFs for trading. The price of bitcoin briefly spiked after the initial post, but then quickly slid below $46,000.

Market Validation: The approval and launch of a spot Bitcoin ETF would further validate Bitcoin's legitimacy in the mainstream financial system. This perceived legitimacy could bolster confidence in Bitcoins and drive prices higher.

Bitcoin-based ETFs have grown to almost $61 billion in total assets under management, though that's still a fraction of the overall $9.5 trillion assets in U.S. ETF funds. Like bitcoin ETFs, ether funds are listed on traditional exchanges like the New York Stock Exchange and the Nasdaq^®.

No 24/7 trading: Unlike many crypto exchanges that allow investors to trade 24 hours a day, the regular exchanges that spot Bitcoin ETFs trade on only allow for trading during regular market hours.

A selection of financial institutions, including household names like BlackRock and Fidelity, have been given permission by the US Securities and Exchange Commission (SEC) to launch spot bitcoin exchange-traded funds (ETFs), whose value tracks the price of bitcoin.

If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.