Eleven Spot Bitcoin ETFs: A Significant Development for Cryptocurrency with US Exchange and SEC Approval

Eleven spot bitcoin ETFs have received permission from the US Securities and Exchange Commission (SEC) at a critical juncture in the cryptocurrency business, signifying a significant turning point in the sector's ascent to mainstream legitimacy. These regulatory bodies' approval of digital assets indicates that they are becoming more widely accepted in conventional financial frameworks. 

Investors now have more chances, thanks to this landmark decision. The cryptocurrency market is expected to increase because of the well-established finance sector and blockchain technology coming together. With this permission, public perception of cryptocurrencies has shifted, making them credible investment options and paving the way for further adoption inside the global financial system.

Which Eleven Spot Bitcoin ETFs Got Approved?

The 10th of January 2024 saw a historical move when the US SEC approved 11 spot bitcoin ETFs. Supporting these ETFs opens a new route for traders interested in investing in crypto assets. This decision will aid traders with many benefits, including taxation. 

The eleven spot bitcoin ETFs approved are:

• ARK 21 Shares Bitcoin ETF (NYSE: ARKB)
• WisdomTree Bitcoin Fund (NYSE: BTCW)
• Bitwise Bitcoin ETF (NYSE: BITB)
• Valkyrie Bitcoin Fund (NASDAQ: BRRR)
• Blackrock’s iShares Bitcoin Trust (NASDAQ: IBIT)
• VanEck Bitcoin Trust (NYSE: HODL)
• Franklin Bitcoin ETF (NYSE: EZBC)
• Invesco Galaxy Bitcoin ETF (NYSE: BTCO)
• Fidelity Wise Origin Bitcoin Trust (NYSE: FBTC)
• Hashdex Bitcoin ETF (NYSEARCA: DEFI)
• Grayscale Bitcoin Trust (NYSE: GBTC)

With the approval of these eleven, some stability in bitcoin prices and reduced liquidity risks are expected over time. Industry experts also believe there will be a flow of institutional investments. 

In the words of Sidharth Sogani, Founder and CEO of a crypto research firm - CREBACO, “We anticipate around $5 billion coming in the next 45 days itself.”

How Will These ETFs Work?

These ETFs are scheduled to be listed on the CBOE, Nasdaq, and NYSE. Their assets will be bitcoin bought from crypto exchanges and stored via guardians like Coinbase Global. The products follow a baseline set by Bitcoin. 

Uptrend Market Graph

A few adhere to an index that compiles trade information from multiple Bitcoin-USD markets. These are provided by CF Benchmarks, a branch Kraken, the cryptocurrency exchange, and are managed by significant cryptocurrency exchanges.

The CBOE and Nasdaq have already considered any manipulation allegations brought by the SEC. They have already worked with Coinbase, the largest cryptocurrency exchange in the United States, to develop a market surveillance system to relieve these worries.

Additionally, fees from issuers are anticipated to range from 0.20% to 0.8%, less than the ETF market's typical range.

How is Bitcoin Priced?

The next day, after the approval of these ETFs, there was a share trade of approximately $4.6 billion. This trade resulted in Bitcoin reaching its highest in the last two years. So, how much are Bitcoin and other cryptos priced today? Let's examine this:

Bitcoin (BTC) - $42, 656.60 as of 16th Jan 2024

Ethereum (ETH) - $2,527.96 as of 16th Jan 2024

Tether (USDT) - $0.9995 as of 16th Jan 2024

Binance Coin (BNB) - $315.20 as of 16th Jan 2024

Solana (SOL) - $95.516 as of 16th Jan 2024

Bitcoin ETFs and its Significance on the Crypto Market

In the world of cryptocurrency, this SEC ruling is seen as historic. This approval gives the crypto sector greater legitimacy and opens up new avenues for innovation through the acceptance, maturity, and mainstreaming of this sector.

These ETFs will provide easy access to the crypto sector, thus gaining more investors' attention and liquidity. Because they allow retail investors to manage their portfolios independently and have inexpensive fees, exchange-traded funds (ETFs) are popular among this group of investors.

Traders can informally own a piece of Bitcoin without having to deal with the hassles of buying and maintaining it by investing in ETF shares. It will give them a regulated and convenient way of investing in Bitcoin. It will be especially great for people new to cryptocurrency who want to explore this sector.

However, it is always recommended that investors should stay vigilant and aware of the risks associated with crypto products, such as Bitcoin, Ether, and others.

Final Thoughts

In summary, the US Exchange and SEC's approval of eleven spot Bitcoin ETFs is a turning point for the Bitcoin market by indicating a radical move toward mainstream acceptability. This regulatory approval not only gives investors a safe way to invest in Bitcoin but also attests to the legitimacy and development of the whole digital asset market. 

This milestone encourages greater trust among institutional and individual investors as cryptocurrencies continue to enter established financial frameworks. It is a significant step forward in integrating cryptocurrencies into the global economic scene and a tribute to the industry's continued efforts to establish itself as a recognized and respectable asset class.