After much deliberation, spot Bitcoin (BTC-USD) exchange-traded funds (ETFs) are officially cleared for business. Indeed, Bitcoin fans are rejoicing after the Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applications on Wednesday.
So, what do you need to know about Bitcoin’s latest major win?
Well, after years of waiting, it seems the SEC has finally given in and accepted the digital currency future. Indeed, spot Bitcoin ETFs are exchange-traded funds that allow direct exposure to Bitcoin as part of a standard brokerage account. Unlike other products that track Bitcoin futures, a spot Bitcoin invests directly into the cryptocurrency, rather than derivative contracts.
Crypto investors have long been pounding the table over the potential of Bitcoin ETFs, perhaps reasonably so. Spot Bitcoin ETFs offer an accessible and direct way for investors to tap into the growing crypto trend.
Spot Bitcoin products operate by owning entire Bitcoins in a sort of digital vault, managed by registered operators. This allows the fund to mirror the movements of BTC in the market.
Compared to digital wallets, tracking the crypto from the comfort of standard brokerage accounts is far more convenient. Some investors believe this will prove a major benefit to the crypto itself.
So, what are the 11 spot Bitcoin ETFs?
The 11 Spot Bitcoin ETFs Approved by the SEC
The SEC has approved the following list of spot Bitcoin securities:
- ARK 21Shares Bitcoin ETF (NYSE:ARKB)
- Bitwise Bitcoin ETF (NYSE:BITB)
- Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT)
- Franklin Bitcoin ETF (NYSE:EZBC)
- Fidelity Wise Origin Bitcoin Trust (NYSE:FBTC)
- Grayscale Bitcoin Trust (NYSE:GBTC)
- Hashdex Bitcoin ETF (NYSEARCA:DEFI)
- Invesco Galaxy Bitcoin ETF (NYSE:BTCO)
- VanEck Bitcoin Trust (NYSE:HODL)
- Valkyrie Bitcoin Fund (NASDAQ:BRRR)
- WisdomTree Bitcoin Fund (NYSE:BTCW)
“The approval has the potential to simplify and secure Bitcoin investments for a broader investor base, which may reshape the dynamics of cryptocurrency investments,” Rajeev Bamra, Senior Vice-President of digital finance at Moody’s, told Reuters.
All eyes are on Bitcoin today. Despite this, the crypto is actually down on the day. Indeed, BTC is in the red 1.35% since midnight. Though, given the crypto has surged more than 70% in the past few months ahead of the ETF launch, today may just be some stage shyness.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
