Valkyrie CIO Steven McClurg reacts to companies awaiting spot Bitcoin ETF ruling on 'Claman Countdown'.
The Securities and Exchange Commission (SEC) has approved the first-ever Spot Bitcoin exchange-traded fund, opening the door to easy access to investing in the largest cryptocurrency by market value, and other benefits detailed by the SEC. Provides more protection to investors. Chairman Gary Gensler said in Wednesday's announcement.
“These products will be listed and traded on registered national stock exchanges. Such regulated exchanges are required to have rules to prevent fraud and manipulation. , we will closely monitor to ensure that those rules are enforced.Furthermore, the European Commission will “sufficiently monitor” all fraud and manipulation in securities markets, including schemes using social media platforms. “We will investigate,” he said.
There are about 11 ETFs that could begin trading, including one from Cathie Wood's ARK Invest.
“The democratization we started to provide our clients with democratic access to innovation has resulted in democratic access to innovation, both in the public market and in pure innovation funds. And now, With our venture into private markets, Bitcoin is an extension of that, democratization, access. We think it's on its way to becoming one of the most important assets in history.” she said in an interview on “The Claman Countdown” ahead of the SEC's announcement.
Spot Bitcoin ETF and Ticker
- ARK/21 stock ARKB
- BITB per bit
- Blackrock IBIT
- Fidelity FBTC
- Franklin Templeton EZBC
- Grayscale GBTC
- Invesco/Galaxy Digital BTCO
- Valkyrie BRRR
- Van Eck HODL
- Wisdom Tree BTCW
better price tracking
The Spot Bitcoin ETF allows investors to efficiently track the price of Bitcoin, where volatility and fluctuations are not uncommon. Bitcoin is currently trading around $48,000, below its 52-week low of $17,474 hit last January, as tracked by the Dow Jones Market Data Group. It is still far from the all-time high of $67,802.30 hit in November 2021.
Live Crypto Prices: FOXBUSINESS.COM
More investment options
Before ETFs were approved, investors had to open an account with a crypto exchange like Coinbase or a trading platform like Robinhood. Currently, you can purchase ETFs directly through your brokerage account or with a traditional brokerage account. Some investors may still choose to use Coinbase or Robinhood.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| coin | Coinbase Global Co., Ltd. | 144.95 | -6.34 | -4.19% |
| hood | Robinhood Market Co., Ltd. | 11.86 | -0.28 | -2.35% |
Opening up Bitcoin to more investors
It also makes investing in Bitcoin easier for registered financial advisors and their clients.
”Currently, many individual investors invest directly in Bitcoin. But…obviously, this opens up the field for some financial advisors. People who receive orders from retailers, family offices, and other institutions. That means it opens up access to players from all sectors of the investment world,” Roksanna Islam, head of sector and industry research at VettaFI, told FOX Business.
Ahead of SEC approval, BlackRock CEO Larry Fink raised the cost factor for cryptocurrencies. (Michael M. Santiago/Getty Images)
competitive rates
By approving a series of spot Bitcoin ETFs, the SEC has opened the floodgates to competition.
”“First of all, I think investors look at fees,” Islam said, adding, “I think for a lot of mainstream investors, they look at BlackRock because BlackRock is a well-known name. But it's not that big in the world's crypto world,' Islam added.
Ahead of SEC approval, BlackRock CEO Larry Fink raised the cost factor for cryptocurrencies.
“What we are trying to do with cryptocurrencies is to make cryptocurrencies as a whole more democratic and cheaper for investors,” Fink said in an interview with “The Craman Countdown” in July. He spoke at
SEC Chairman Gensler’s Statement on Spot Bitcoin ETF
Sam Bankman Fried, former founder and CEO of FTX (Sarah Silbiger/Bloomberg/Getty Images)
insurance assets
When Sam Bankman Fried's FTX collapsed, wiping out approximately $1 billion in assets, investors were reminded of the high risks involved in investing in cryptocurrencies. Currently, Bitcoin Spot ETFs are offered more protection if they are registered with the SEC.
Josephine Wang, president and CEO of Securities Investor Protection Corporation, told FOX Business, “SIPC will not be able to list clients in liquidation under the Securities Investor Protection Act as long as the ETF is registered with the SEC.” “It protects against losses in mutual fund stocks.” “The maximum protection limit per customer for lost securities and related cash is $500,000. Of the $500,000, up to $250,000 may be used to replace lost customer cash.” she added.
By comparison, the Federal Deposit Insurance Corporation, which protects bank depositors, does not insure crypto or digital assets.
