US Approves Spot Bitcoin ETF, Bitcoin Price Could Soar

The US Securities and Exchange Commission (SEC) announced on January 10 that it has approved the proposal of 11 Bitcoin spot exchange-traded funds (ETFs) listed on leading exchanges, including the New York Stock Exchange (NYSE), Nasdaq...

Mỹ cấp phép quỹ ETF Bitcoin giao ngay, giá Bitcoin có thể tăng vọt- Ảnh 1. — SEC logo next to illustrated digital coins

ETFs are traded on public markets, allowing investors to gain exposure to asset price movements without directly owning the underlying asset. In simple terms, these funds will use investors' money to invest in stocks, bonds, etc. According to AFP, the 11 ETFs that have just been approved mainly invest in the digital currency Bitcoin.

The newly approved ETFs are owned by BlackRock - the world's leading asset management group, Ark Investments/21Shares, Fidelity, Invesco, VanEck...

The value of the ETF is based on the actual value of Bitcoin. Some ETFs are indexed by CF Benchmarks, a subsidiary of the Kraken cryptocurrency exchange, which aggregates trading data from several Bitcoin-USD markets operated by major cryptocurrency exchanges, according to Reuters.

Spot Bitcoin ETF issuers charge transaction fees of only 0.2-0.8%, much lower than the ETF market average. Some companies even waive transaction fees initially to attract investors.

After being licensed, some products are expected to start trading as early as January 11, according to Reuters.

The SEC's approval of Bitcoin spot ETFs is a huge win for the cryptocurrency industry, increasing its legitimacy and bringing Bitcoin deeper into the mainstream.

Standard Chartered Bank estimated last week that ETFs could attract $50 billion to $100 billion in investment into the Bitcoin market alone this year, potentially pushing Bitcoin prices to as high as $100,000 per coin. Bitcoin is currently trading at around $47,300. The currency has surged more than 70% in recent months amid the SEC’s decision and hit its highest level since March 2022 this week.

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