Sec Approves The First Bitcoin Etf

Sec Approves The First Bitcoin Etf by Emily Clark last updated on January 31, 2024

It's finally official, as the SEC has just approved a new ETF based on Bitcoin. This is a positive development for the crypto industry as it has made cryptocurrencies one step closer to being regarded as legal asset classes.

In addition, this will also open the doors of institutional money for Bitcoin & other coins. According to the SEC, around 11 applications for the Bitcoin ETF were approved, which includes big names like Invesco, BlackRock, and Ark Investments, to name a few.

The Trading in these Bitcoin ETFs will start on Thursday & and will lead to significant competition between different hedge funds to attract investors.

Game Changer For Bitcoin

To say that this was a game changer for the crypto industry and Bitcoin in particular isn't wrong. In addition, this also provides much-needed confidence to investors.

According to one expert, this move has been an important milestone as Bitcoin has been institutionalized! Similarly, an analyst from Standard Chartered said that around $50 - $100 billion worth of funds will move into the Bitcoin ETFs in 2024. Another expert believes that these Bitcoin-based ETFs will receive $55 billion worth of inflows.

To offer some perspective, $913 billion was the last-checked market cap of Bitcoin. In comparison, the ETF's market capitalization is $6.5 trillion, highlighting the opportunities available to Bitcoin!

After approval, Bitcoin crossed $47000 & and is now eyeing the $50,000 round figure. Since the news of the ETF, Bitcoin has been soaring in hopes that it will get approved soon.

Looking ahead, the factors deciding how much inflows will go into Bitcoin will be liquidity & and fees. For now, some firms offer meager fees, like 0.2%, while others charge more normal fees of 1.5% for managing the assets.

According to some experts, approving Bitcoin ETFs will also lead to increased spending in marketing & and online advertising.