12 Jan, 24

What are the 11 US Spot Bitcoin ETFs?

bitcoin etfs banner
Zerocap

Zerocap

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. This approval signals a major shift in the investment landscape, offering both institutional and retail investors new avenues for Bitcoin exposure. This article explores these newly approved Bitcoin ETFs, their implications, and what they mean for investors.

Understanding Spot Bitcoin ETFs

Spot Bitcoin ETFs are exchange-traded funds that invest directly in Bitcoin, unlike other products that track Bitcoin futures or derivative contracts. These ETFs provide direct exposure to Bitcoin’s price movements, offering an accessible way for investors to tap into the crypto market through standard brokerage accounts. By owning entire Bitcoins in a digital vault, these ETFs mirror the movements of Bitcoin in the market, offering a convenient alternative to digital wallets for tracking cryptocurrency investments.

The 11 Approved ETFs

The 11 spot Bitcoin ETFs approved by the SEC include a diverse range of offerings from well-known investment firms. These ETFs are:

  1. ARK 21Shares Bitcoin ETF (NYSE:ARKB)
  2. Bitwise Bitcoin ETF (NYSE:BITB)
  3. Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT)
  4. Franklin Bitcoin ETF (NYSE:EZBC)
  5. Fidelity Wise Origin Bitcoin Trust (NYSE:FBTC)
  6. Grayscale Bitcoin Trust (NYSE:GBTC)
  7. Hashdex Bitcoin ETF (NYSEARCA:DEFI)
  8. Invesco Galaxy Bitcoin ETF (NYSE:BTCO)
  9. VanEck Bitcoin Trust (NYSE:HODL)
  10. Valkyrie Bitcoin Fund (NASDAQ:BRRR)
  11. WisdomTree Bitcoin Fund (NYSE:BTCW)

These ETFs are set to provide more secure and simplified Bitcoin investment options for a broader investor base​​​​.

Impact on the Crypto Industry

The approval of these spot Bitcoin ETFs is expected to reshape the dynamics of cryptocurrency investments significantly. It simplifies and secures Bitcoin investments, potentially drawing a wider range of investors, including those who prefer traditional investment vehicles over direct cryptocurrency purchases. Analysts believe these ETFs could drive significant capital into Bitcoin, as seen by Bitcoin’s price surge following the announcement​​​​.

SEC’s Stance and Future Outlook

While the SEC’s approval of these ETFs is a positive step for cryptocurrency adoption, the Commission’s chair, Gary Gensler, has issued a cautionary note. He emphasized that the SEC’s approval does not constitute an endorsement of Bitcoin, which he describes as speculative and volatile. Despite these warnings, the approval is a significant step towards mainstream acceptance of cryptocurrencies and may pave the way for future crypto-related investment products, such as Ethereum ETFs​​​​.

Conclusion

The SEC’s approval of 11 spot Bitcoin ETFs marks a historic moment for the crypto community, offering new investment opportunities and potentially altering the landscape of cryptocurrency investments. This decision reflects growing acceptance and integration of digital assets within traditional financial systems, heralding a new era for both the crypto and investment sectors.


FAQ

  1. What are Spot Bitcoin ETFs? Spot Bitcoin ETFs are exchange-traded funds that invest directly in Bitcoin, providing direct exposure to its price movements within standard brokerage accounts.
  2. Why are Spot Bitcoin ETFs significant? They offer a more accessible and secure way for a broader range of investors to invest in Bitcoin, compared to direct cryptocurrency purchases or futures-based products.
  3. Which companies have launched Spot Bitcoin ETFs? Companies like ARK, Bitwise, Blackrock, Fidelity, Franklin Templeton, Grayscale, Hashdex, Invesco Galaxy, VanEck, Valkyrie, and WisdomTree have launched Spot Bitcoin ETFs.
  4. What impact could these ETFs have on Bitcoin? The ETFs could drive significant capital into Bitcoin, offering more mainstream and regulated investment vehicles for Bitcoin exposure.
  5. Did the SEC endorse Bitcoin by approving these ETFs? No, SEC Chair Gary Gensler clarified that the SEC’s approval of these ETFs does not constitute an endorsement of Bitcoin, which remains a speculative and volatile asset.

About Zerocap

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com

DISCLAIMER

This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

Like this article? Share
Latest Insights

12 Jan, 24

What is SSV Network?

SSV Network represents a pivotal innovation within the cryptocurrency landscape, particularly in the realm of Ethereum staking. This platform introduces a decentralized validator infrastructure, underpinning

12 Jan, 24

What is ERC 404? The Hybrid NFTs

ERC 404, an emerging token standard on the Ethereum blockchain, represents a significant innovation in the realm of digital assets. It uniquely combines the characteristics

Weekly Crypto Market Wrap, 19th February 2024

Download the PDF Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets

Receive Our Insights

Subscribe to receive our publications in newsletter format — the best way to stay informed about crypto asset market trends and topics.

Want to see how bitcoin and other digital assets fit into your portfolio?

Contact Us
Ready to sign up?
Create an Account