Bitcoin Spot ETF’s Road to “Return to Positive”
#BTC Spot ETFs were proposed as early as 2013. For 10 years since then, the current SEC Chairman Gary Gensler and his predecessor Jay Clayton have refused to allow the launch of such products due to the fluctuations in Bitcoin prices. Violence, concerns about investor protection, the possibility of market manipulation, etc.
However, BlackRock unexpectedly filed a related application in June last year. In August last year, Grayscale Investments won a key lawsuit against the U.S. SEC. The judge of the Washington, D.C. Circuit Court of Appeals ruled in the ruling that the SEC approved the Bitcoin futures ETF and rejected Grayscale’s conversion of GBTC into spot Bitcoin. ETF decisions are "arbitrary and capricious."
The case triggered a surge in cryptocurrencies amid speculation that the U.S. SEC would eventually have to compromise and give the green light to growing calls for a spot Bitcoin ETF.
There has been a farce surrounding the approval of a Bitcoin spot ETF.
At the end of the U.S. stock market on Tuesday, January 9th, Eastern Time, the U.S. SEC’s official account on social media Approved ETFs will continue to be monitored to ensure that their compliance measures continue to protect investors.
Soon afterwards, SEC Chairman Gary Gensler posted through his personal
On Wednesday, the SEC said the FBI was investigating the hacking of the agency's X account.
On the eve of the U.S. SEC’s final ruling on the listing of Bitcoin spot ETFs, potential Bitcoin ETF issuers have further reduced fees to attract investors, highlighting the fierce competition in this field.
BlackRock has lowered fees on its iShares ETF by 5 basis points to 0.25%, according to its latest filing with the U.S. Securities and Exchange Commission. Pay a 0.12% rate instead of a 0.20% rate for the first $5 billion in scale.
Industry insiders believe that BlackRock's fee reduction is a direct hit. Due to BlackRock's brand effect and distribution channels, their products are the most popular. This time they reduced the price so quickly and to such a low level. , which is a blow to its competitors, that is, other ETF issuers.
Another filing showed Ark will be listed at a rate of 0.21%, 4 basis points lower than the rate it proposed on Tuesday.
The above-mentioned fee reductions by BlackRock and Ark occurred after several other potential issuers of Bitcoin ETFs - Invesco, Valkyrie, WisdomTree, etc., expressed their hope to reduce their fees. Bitwise is currently still the cheapest option, charging a fee of 0.20% after the fund’s initial launch promotion period.
2. What is the difference between Bitcoin spot ETF and futures ETF?
Bitcoin futures ETFs are one step ahead of spot ETFs. On December 18, 2017, the Chicago Mercantile Exchange (CME), one of the world’s largest futures exchanges, launched Bitcoin futures contracts.
According to an earlier report by Guosheng Securities, the underlying asset of the Bitcoin futures ETF is the Bitcoin futures contract. The core difference between the Bitcoin futures ETF and the spot ETF is the underlying asset. From the perspective of price fluctuations, spot ETFs and futures ETFs are very similar, and both aim to accurately track BTC prices and help investors gain BTC exposure; usually futures ETFs have higher fees because they also involve futures contract operations, which are more complex.
Therefore, the market has been looking forward to the U.S. SEC’s approval of a Bitcoin spot ETF as soon as possible.
3. Compared with holding Bitcoin directly, what are the advantages of holding Bitcoin ETFs?
Mainly cost and convenience.
If buying Bitcoin directly, small investors on many trading platforms sometimes pay fees and spreads of more than 1% of their purchase amount. It's much cheaper to buy a Bitcoin ETF since many platforms, including Robinhood Markets and Fidelity, offer zero-commission trading.
In addition, compared with opening an account specifically for purchasing Bitcoin on trading platforms such as Coinbase, investing in ETFs is more convenient. Investors can jointly manage Bitcoin and other assets in the same account. Investors also do not have to worry about passwords to cryptocurrency exchange accounts being lost or stolen, reducing the risk of potential asset losses.
Bitcoin ETFs can also be held in investors’ retirement accounts, which avoids the capital gains taxes that come with holding Bitcoin directly. But it also means that even if the price of Bitcoin falls, the taxes it accrues in retirement accounts will not decrease.
All in all, holding Bitcoin in a dedicated cryptocurrency trading account carries certain risks, which scares away many institutional investors and financial advisors from investing directly in Bitcoin. Now, fund companies have launched Bitcoin ETFs, allowing investors to hold them through traditional stock accounts. Fund companies are betting that this approach could attract billions of dollars in new money, helping the Bitcoin market continue to grow.
4. Officially "converted"
On January 11, 2024, the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs for the first time in history, authorizing 11 ETFs to begin trading on Thursday.
The U.S. SEC said it has approved the listing and trading of spot Bitcoin ETFs through expedited mode. Approved spot Bitcoin ETF issuers include: Grayscale, Bitwise, Hashdex, iShares, Valkyrie, Ark 21Shares, Invesco Galaxy, Vaneck, WisdomTre, Fidelity and Franklin.
In addition, according to a notice posted on the CBOE website on the same day on Wednesday, spot Bitcoin ETFs from multiple issuers are scheduled to begin trading on Thursday.
Following news of the approval of a Bitcoin spot ETF, the digital currency rose less than 1% to less than $46,000.
The approval of a Bitcoin spot ETF will allow investors to trade the digital currency in their traditional stock brokerage accounts rather than on those startup platforms. The cryptocurrency industry has endured a series of scandals and bankruptcies, with startups coming under increasing scrutiny.
Cryptocurrency investors have been eagerly awaiting the final regulatory approval of a Bitcoin spot ETF, as it would make mainstream investors more comfortable with the digital currency. Analysts expect up to $4 billion in inflows on the first trading day after the Bitcoin spot ETF is approved.
5、比特币ETF意义和工作原理
交易所交易基金（ETF）是类似股票的投资工具，除了它们遵循指数或其他标的（btc）资产而不是特定的业务。
What is a Bitcoin ETF in Simple Words? They are exchange-traded funds that only include BTC. Investors can grow their assets and profit from rising cryptocurrency values by buying shares in such funds, rather than having to buy and hold Bitcoin themselves.
The basic concepts of running a Bitcoin ETF are not particularly difficult, but you should still evaluate your familiarity with cryptocurrencies and your understanding of market volatility. To purchase ETF shares, you need to create a brokerage account. It is important to note that opening conditions may vary from country to country. It is usually sufficient to provide the broker with identification. After this, all that remains is to find the ticker symbol (short for investment instrument) in the list and specify the Bitcoin ETF share to buy now.
一句话说明：在可以开户的国家和地区开通账户，然后敲入代码，就可以购买比特币现货ETF了，下图左侧是ETF，右侧是BTC，大家可以自行对比他们的锚定关系变化
6. Estimated market size of Bitcoin spot ETF
ProShares' Bitcoin strategy ETF BITO's assets under management exceeded US$2 billion. BITO attracted a net inflow of US$506 million in 2023 and attracted an inflow of US$30 million in the first eight days of 2024. As a result, Bitcoin spot The ability of ETFs to attract money is evident.
According to an October 2023 report by Galaxy Digital, the approval of a Bitcoin ETF could have an immediate impact on the U.S. wealth management industry. The market available for Bitcoin ETFs and the indirect impact and coverage of Bitcoin ETF approval will extend far beyond U.S. wealth management channels (such as international markets, retail markets, other investment products and other channels) and may attract additional capital inflows Bitcoin spot market and investment products.
If we assume that Bitcoin is adopted by 10% of total available assets in each wealth channel, with an average allocation of 1%, the Galaxy Digital report estimates that there will be $14 billion in inflows in the year after the launch of the Bitcoin ETF, by It will increase to $27 billion in the second year and reach $39 billion in the third year after launch.
总结：
The approval of the listing of Bitcoin ETF is of great significance to the times.
Don't use your knowledge to evaluate the power of capital. It can launch wars, and you have never experienced it.
The rule of capital is to make a profit, and care about the holding costs of Grayscale and Brad's holding costs. This is their starting point, not their end.
At the beginning of this era, we should feel honored and treat the market with awe, and then look at the cryptocurrency market with a long-term perspective like capitalists. I hope we can have satisfactory results in this market~~
