Decade-Long Wait Ends: Bitcoin ETF Launches in the U.S., Accelerating Crypto-Finance Integration
Summary:
A decade after the Winklevoss twins first proposed the concept, a Bitcoin spot exchange-traded fund (ETF) has been launched in the United States. The U.S. Securities and Exchange Commission approved nine applications from major asset management firms. This significant approval could lead to an estimated investment inflow of around $10 billion into the ETFs by 2024 and impact the integration of the crypto and traditional financial markets. This article also covers Brevan Howard and Hamilton Lane's plan to tokenize assets, Ripple Labs' $285 million stake buyback, an oversubscribed equity offering by Core Scientific, and a funds rebalance by Grayscale. Furthermore, Bitcoin ETFs marked a record trading volume of $1.6 billion within minutes of their launch.
A decade after twins Cameron and Tyler Winklevoss first submitted an application to debut the Winklevoss Bitcoin Trust, a Bitcoin (BTC) spot exchange-traded fund (ETF) has finally been unleashed in America. On January 10, the U.S. Securities and Exchange Commission gave the green light to nine ETF applications from a variety of key asset management corporations. Predictions from market gurus suggest around $10 billion will be funneled into the ETFs by 2024. This revolutionary verdict further validates Bitcoin as an established asset and paves the way for potential derivative investment vehicles, including leveraged and short Bitcoin ETFs. The resulting ripple effects of this landmark decision could resonate far beyond the realm of finance, symbolizing a critical turning point in the greater acceptance and acknowledgement of BTC, setting off a butterfly effect that could alter our economic landscape and usher in an era of unprecedented possibilities. While the crypto community has been in a state of high anticipation, additional happenings within the crypto world include asset tokenization by Brevan Howard and Hamilton Lane, a buyback from Ripple, Core Scientific's oversubscribed equity offering, and a funds rebalance by Grayscale. Within moments of initiating trade on January 11, Bitcoin ETF trading volume rocketed past $1.6 billion, following the U.S. Securities and Exchange Commission's nod of approval. Brevan Howard and Hamilton Lane will be the first to tokenize assets via the upcoming Libre protocol, slated to kick off in the first quarter of 2024. Meanwhile, Ripple Labs is preparing a tender offer to repurchase a $285 million stake from early benefactors and staff members, with an estimated expenditure of $500 million earmarked for the venture. Finally, Grayscale revised limitations for its crypto funds and Bitcoin miner Core Scientific has finalized a $55 million equity financing round as it limbers up for a return to solvency.
Published At
1/13/2024 10:42:05 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.