Some details you need to know about Bitcoin spot ETFs:
1. Spot ETFs mean there is no need to directly purchase or store Bitcoin, reducing investors’ compliance, fees, liquidity and management cost issues.
Focus: Traditional exchanges, compliance, investment tools.
2. Spot ETFs avoid the risks of centralized exchanges such as FTX, which is important.
3. Bitcoin spot ETF will charge fees, and the fee ratio of Bitcoin spot ETF is expected to be between 0.80% and 1.00%.
4. The SEC has always been cautious in approving Bitcoin spot ETFs, which are limited by market stability and investor safety. However, this time the SEC stated that it will be more open and flexible in dealing with Bitcoin spot ETF proposals. For example, the BlackRock ETF proposal allows cash redemptions. Increase chances of approval.
5. It is important that Bitcoin spot ETFs are a viable option for institutional investors who want to invest in Bitcoin but are not structurally suitable to buy and hold Bitcoin directly.
6. There may be seed funding methods for Bitcoin ETFs, such as using crypto assets to purchase Bitcoin spot ETFs.
