US approves Bitcoin spot ETF, Bitcoin price could skyrocket

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

SEC logo next to illustrated digital coins

ETFs are traded on the public market, allowing investors to gain exposure to asset price movements without directly owning the underlying assets. Simply put, these funds will use investors' money to invest in stocks, bonds... 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 ETFs 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-dollar 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 average for the ETF market. 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 spot Bitcoin 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 $50-100 billion in investment into the Bitcoin market alone this year, which could push Bitcoin prices 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 as it awaits the SEC's decision and hit its highest level since March 2022 this week.

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