Spot Bitcoin ETFs Set to Begin Trading on January 11 Following SEC Approval
Summary:
Following the SEC's approval, 11 spot Bitcoin exchange-traded funds (ETFs) are set to start trading on January 11, according to James Seyffart, a Bloomberg ETF analyst. Previous crypto-related ETF products usually started trading within two weeks, but Seyffart hints that the process could be expedited this time. This approval could create a market boom, with estimates of around $2.4 billion expected to flow into Bitcoin products in Q1 of 2024 alone. The introduction of these ETFs is expected to increase Bitcoin's value due to regulated exposure to institutional investors in the US, a first in the nation's history.
Following the approval by the SEC for 11 spot Bitcoin exchange-traded funds (ETFs), it is anticipated that they will commence trading from January 11. James Seyffart, Bloomberg ETF analyst, took to Twitter to confirm that several S-1 prospectuses have been approved and they are "going effective." He sounds very optimistic and believes that trading can start soon without any more necessary steps.
Before the approval of these ETFs, Cointelegraph had a conversation with Seyffart on January 2. At that time, he had forecasted that a spot Bitcoin ETF could be launched within a few days of approval. With the successful approval, he amends his statement by suggesting that it could start trading the same day they receive approved S-1s.
Historically, crypto-related ETF products usually began trading within two weeks of approval. Instances include ProShares’ Bitcoin Strategy ETF (BITO), approved on October 11, 2021, which commenced trading eight days later. Likewise, Valkyrie introduced Ether futures to its existing Bitcoin Strategy ETF, which got approval on September 28, and trading started seven days later.
However, Seyffart commented that the situation is different this time. Unlike the futures ETF, the process is not the same, implying that the exact timeline may vary.
Meanwhile, VanEck, a global fund manager, estimates an inflow of around $2.4 billion into spot Bitcoin products in Q1 of 2024. Bitwise, a crypto investment fund, anticipates that spot Bitcoin ETFs could become the most successful ETF product ever released, amassing a notable amount of $72 billion in assets under management in a five-year span.
VanEck adviser Gabor Gurbacs, however, holds a slightly different viewpoint, suggesting that the early period of Bitcoin ETFs might be a bit disappointing, yet arguing that it could potentially bring trillions of dollars of new capital into the sector in the long haul.
This approval marks a historical event, allowing financial giants like BlackRock and Fidelity to debut an investment product offering regulated exposure to Bitcoin to US institutional investors for the first time. While some speculations surround the funds’ short-term performance, analysts concur that the spot ETFs will positively affect Bitcoin's price in the future. According to predictions from the crypto investment firm, Galaxy Digital, Bitcoin is expected to record a surge of at least 74% from its value at the beginning of the year. Bitcoin is presently trading at $46,410, marking a 1.52% rise since the ETF approval.
Published At
1/11/2024 2:09:40 AM
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