Spot Bitcoin ETF has finally been approved in the US after 10 years of rigorous trials. The next step is to have it traded on Thursday morning.
Following the Securities and Exchange Commission's green light Wednesday afternoon, the long-awaited product will debut on U.S. markets run by the NYSE, Cboe Global Markets and Nasdaq, with support from major trading houses planning to provide liquidity. It turns out.
Trading could technically begin as early as 4 a.m. ET (9 a.m. UTC), since that's when U.S. stock exchanges open, rather than the famous daily opening ceremony that takes place five and a half hours later. there is a possibility.
This product allows virtually any retail customer to have exposure to Bitcoin. (Bitcoin) Not only can you set prices using traditional brokerage apps and accounts, but it also allows traditional financial institutions to invest without going through a cryptocurrency exchange.
Cynthia Roe Bessette, head of digital asset management at Fidelity, one of the Bitcoin ETF issuers, said these ETFs give investors interested in digital assets more options. The latest product differs from the Bitcoin futures ETF, which was approved in the US in 2021, by investing in derivatives rather than the digital asset itself.
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“We have long believed that spot-priced exchange products are an efficient way for investors to gain exposure to Bitcoin,” she said. “As a company, we remain committed to meeting growing demand from investors by providing tools that support their choices and facilitate secure access to markets.”
Similarly, a CBOE Global Markets spokesperson said the ETF provides investors with a “transparent and regulated” way to track the price of Bitcoin. “This approval represents a major step forward in establishing cryptocurrencies as a tradable asset class, paving the way for new trading opportunities.”
There are 11 spot Bitcoin ETF funds on offer, some of which already have billions of dollars in assets ready for launch, but liquidity providers and market makers are still preparing for this day. has spent the past few months making sure the Bitcoin market is here to stay. – Efficient as there is a new wave of interest on Thursday.
Douglas Yones, head of NYSE exchange-traded products, said the Bitcoin spot market, Bitcoin futures market, and Bitcoin futures ETF will all help spot ETF liquidity on day one. He said the NYSE also has a number of liquidity programs.
“There are dozens of market makers that come into the market and provide liquidity to the ETFs that are coming in, but they have natural hedges that they can take advantage of,” he said. “The New York Stock Exchange has a very good overnight price discovery process leading up to the public offering, so we expect tomorrow's market to be quite dynamic and liquid.”
Robert Mitchnick, head of digital assets at BlackRock, told CoinDesk in an interview that the asset manager will leverage its partnership with Coinbase. In 2021, the company integrated Coinbase Prime with its own portfolio management tool, Aladdin. He declined to say how much money BlackRock had in terms of assets under management when it launched the Bitcoin ETF, but said the company had already increased its assets under management. He disclosed a $100,000 seed investment.
“As has been publicly disclosed, the ETF had a seed investment made by BlackRock,” he said. “One of the things that's really important to understand is that we look at this as a long process.”
David Mann, head of ETF products and capital markets at Franklin Templeton, told CoinDesk in an interview that it is difficult to predict what inflows will look like in the first few days. He expects there will be “huge excitement” on the first day, but said interest and investment may increase more slowly than people realize.
“I would not be shocked if the wide range of ETF users currently considering exposure to Bitcoin within an ETF vehicle go through the normal vetting process to ensure they are comfortable with the ETF. “But it often takes time,” he said.
There may be a “sudden event,” but it may take weeks or months for investors to get used to the Bitcoin ETF and see if it's moving in a way that makes them want to invest. he said.
BlackRock's Mitchnick echoed this point, saying it will be a “long journey” for investors after launch. He cited wealth advisors as an example and said they may be some of the largest investment channels for ETFs. They have not yet had much exposure to investment vehicles, including Bitcoin, and will need an “educational journey” before allocating funds.
“There will be suitability discussions between advisors and clients,” he said. “This is not something that can be achieved quickly, even for institutional investors who previously did not have viable exposure solutions.”
