After years of regulatory back and forth, spot bitcoin ETFs have arrived. The SEC’s approval after days of excitement, as well as some last-minute drama, brings 11 spot bitcoin ETFs to market.
From Fidelity Investments to Franklin Templeton, the new ETFs provide investors the closest exposure to “raw bitcoin” that any ETF has provided to date. While the implications of the news will require more time, and a little help from VettaFi’s financial futurist, to parse, investors can check out the funds’ details right now.
The 11 approved ETFs include strategies from the following managers and partnerships: Grayscale, Bitwise Asset Management, Hashdex, ARK Investment Management and 21Shares, Invesco and Galaxy, Fidelity Investments, WisdomTree Investments, Franklin Templeton, BlackRock, VanEck, and Valkyrie. Jane Street was named as authorized participant for all 11 bitcoin ETF candidate firms earlier this week.
The final days before the ETFs arrive have seen the firms involved compete to offer the best possible price. For example, the trio of Bitwise, the ARK and 21Shares partnership; and Invesco are offering a 0% fee for the first six months. The new strategies all join a market of bitcoin futures and crypto industry ETFs that stand out in their own right.
The Road to Spot Bitcoin ETFs
From the Winklevoss Twins’ first-ever bitcoin trust filing in 2013 and GrayScale’s first bitcoin ETF application in 2016 to the latter’s lawsuit, bitcoin funds have followed a long and winding road to get here. The SEC had rejected previous applications for fear of what might happen should the everyday investor get access to a volatile and relatively unregulated cryptocurrency market.
Where the spot bitcoin ETFs go next, and what they mean not only for crypto but also for the ETF ecosystem, remains to be seen. For Grayscale, however, the move may see its Grayscale Bitcoin Trust converted into an ETF, potentially moving $29 billion worth of bitcoin to an ETF wrapper.
All those topics and more will be a key part of the conversation at VettaFi’s ETF Exchange conference in Miami next month. Until then, you can keep up with the analysis of VettaFi’s Financial Futurist Dave Nadig and VettaFi’s Head of Research Todd Rosenbluth for more on the big spot bitcoin ETF news.
VettaFi will also host a Crypto Symposium on Friday, January 12 at 11 a.m. ET partnering with several of the above firms.
For more news, information, and analysis, visit the Crypto Channel.