Spot Bitcoin ETFs: What to Expect from Day One Trading

UTC by Steve Muchoki · 3 min read
Spot Bitcoin ETFs: What to Expect from Day One Trading
Photo: Depositphotos

Gradual adoption of spot Bitcoin ETFs is expected to happen through proper education to wealth managers as trading is scheduled to begin today.

After a decade of regulatory uncertainty in the United States, investors can now tap on spot Bitcoin (BTC) exchange-traded funds (ETFs) as soon as trading commences today. On Wednesday, the United States Securities and Exchange Commission (SEC) approved the listing and trading of 11 spot Bitcoin ETF shares. The agency opted to approve the dozen spot Bitcoin ETFs simultaneously in order to provide a level playing field for the respective fund managers led by Grayscale Investments, BlackRock Inc (NYSE: BLK), Fidelity, and Ark Invest, among others.

Day One of Spot Bitcoin ETF Trading

The approval of spot Bitcoin ETFs in the United States has been heavily anticipated to improve the overall Bitcoin liquidity in the coming years. The high demand for Bitcoin as an investment product could easily help the flagship coin dethrone Gold and other precious metals in market cap over the next decade. Moreover, Bitcoin has several better features than previous metals in terms of value storage and as a form of payment.

“We’ve long believed a spot-priced exchange-traded-product would be an efficient way for investors to gain exposure to bitcoin,” Cynthia Lo Bessette, head of digital asset management at Fidelity, noted. “As a firm, we remain committed to meeting the growing demand from investors by providing them with tools that support their choices and facilitate secure access to markets.”

Unanimously, experts agree that the approval of spot Bitcoin ETFs in the United States is a major milestone in establishing crypto assets as tradable instruments. According to the NYSE Head of Exchange Traded Products, Douglas Yones, the approval of spot Bitcoin ETFs will significantly improve the underlying liquidity from day one of trading on the respective traditional exchanges.

Meanwhile, Coinbase Global Inc (NASDAQ: COIN), which is the preferred custodian for 8 of the spot Bitcoin ETFs, is expected to be a major beneficiary as more institutional money begins to proliferate into the crypto market.

The respective fund managers are expected to engage clients and wealth managers in educative processes to ensure everyone involved is comfortable with spot Bitcoin ETFs. Furthermore, different fund managers offering the spot Bitcoin ETFs have varying sponsor fees.

“It wouldn’t shock me if ETF users broadly who are now looking at getting some exposure to bitcoin within the ETF vehicle are going to go through their normal review process to make sure that they’re comfortable with the ETF, and that often takes time,” David Mann, Franklin Templeton’s head of ETF products and capital markets, noted.

The approval of spot Bitcoin ETFs in the United States marks a new era of crypto’s mass adoption. With the fourth Bitcoin halving less than 100 days away, the overall crypto-bullish outlook has significantly improved. Meanwhile, crypto cash rotation in the crypto market is expected to trigger a rejuvenated altcoin session in the coming months.

Funds & ETFs, Market News, News
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