The Securities and Exchange Commission has finally given the green light to eleven spot Bitcoin ETF filings in the United States. In an official announcement by the regulator, it approves the spot Bitcoin ETFs for Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity and Franklin.
With trading set to commence immediately, the SEC warns investors to be cautious about the risks associated with trading Bitcoin. According to the chair of the agency, Gary Gensler, the approval has not changed its stance against cryptocurrency. Hence, Gensler emphasized that the SEC does not approve or endorse Bitcoin despite the approval.
All you need to know about the approved Bitcoin ETF products
Don’t forget that ETF is an innovative way to indirectly invest in Bitcoin. This helps to usher in many new investors into the industry. Since the development has the potential to widen crypto popularity and adoption, experts see it as a huge win for the industry. After a few years of regulatory issues in the United States, the green light given to all the filed Bitcoin ETFs has come at the right time for the crypto bulls.
Some of the leading hedge funds that are at the vanguard of this innovative product include BlackRock, Fidelity Investments, Invesco, Grayscale, and several others. With the approval, they must manage the funds on behalf of their investors.
In preparation for the launching of their Bitcoin spot ETF products, these issuers have designed a plethora of seed funding. VanEck, for instance, allocated not less than $72 million for its product. Just recently, Bitwise, another issuer, in an amended S-1 form, announced its intention to seed $500,000 to its own product. More so, the likes of Pantera Capital and Blackrock have also seeded $200 million and $10 million respectively for their Bitcoin spot products.
Expectations
There is a huge indication that these products will record landslide inflows once they are launched. According to the CIO of Valkyrie Investments, Steven McClurg, not less than $200 million of investors’ funds are coming to Valkyrie through its Bitcoin ETF product.
VanEck also expects at least $1 billion of funds within the first few weeks of launching its own product. While Galaxy set its sights on a $14 billion inflow within the first year, Bitwise believes the general Bitcoin ETF market might record over $72 billion in investments within the next five years.
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