Bitcoin ETF Update: SEC trifft sich mit Hashdex (2024)

FAQs

Which bitcoin ETFs did the SEC approve? ›

Yes and no. There were already crypto-related ETFs and trusts out there, but there has never been a spot Bitcoin ETF on the market before the Jan. 2024 approval.

However, investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods. In addition, the regulatory landscape for crypto is evolving, and changes in regulations will undoubtedly impact the performance and availability of these ETFs.

Based upon bitcoin's price history, and with tens of billions of dollars expected to flow into spot bitcoin ETFs in 2024, BTC could surpass its $65,000 high, with crypto services firm Matrixport predicting $120,000 by year's end.

The U.S. Securities and Exchange Commission on Wednesday approved the first U.S. spot bitcoin exchange-traded funds. But experts urge caution before piling into the long-awaited ETFs. The agency signed off on 11 bitcoin ETF applications, including funds from BlackRock , Fidelity, Ark Invest, WisdomTree and Grayscale.

If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.

The SEC's two Republican commissioners, Hester Peirce and Mark Uyeda, joined Gensler in voting to approve the ETFs. “Today marks the end of an unnecessary but consequential saga,” Peirce said.

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Owning an ETF doesn't grant ownership to the underlying product. Think of it as a synthetic asset that's built on top of BTC, and it tracks its price. Investors who buy the ETF don't have to worry about storing and safekeeping BTC. The shares in the ETF are backed by BTC, which is owned and stored by the ETF provider.

Will Vanguard allow bitcoin ETF? ›

The firm has made clear, most recently in a Jan. 24 message to its clients, that it has no plans to offer a bitcoin exchange-traded fund (ETF) or any other cryptocurrency-related products. Nor will it allow any such products from other firms to be offered via its brokerage arm.

Spot bitcoin ETFs hold actual bitcoin, while bitcoin futures ETFs do not. Spot ETFs are designed to hold an equivalent amount of the underlying asset that is represented by the ETF. This gives investors direct exposure to the spot price of bitcoin without having to purchase or store it themselves.

Potential Market Inaccuracy: ETF prices might not reflect real-time fluctuations in the Bitcoin market. Unlike the crypto market, the traditional markets shut down, for a while - and this means a discrepancy might enter the prices until it corrects itself.

A 3x Bitcoin ETF aims to offer investors the opportunity to leverage their investment, amplifying the potential returns or losses to three times the performance of the Bitcoin index or benchmark it follows.

The Securities and Exchange Commission (SEC) has greenlighted the creation of spot bitcoin ETFs, a watershed decision expected to drive billions of dollars into new funds and expose a fresh batch of investors to the ups and downs of crypto investing.

In this graphic, we've shown the eight largest Bitcoin ETFs in the U.S. by assets under management (AUM), as of Feb. 27, 2024. To elaborate, these are ETFs that buy and hold actual Bitcoin, meaning their performance will generally follow that of Bitcoin itself.

SEC Finally Approves Bitcoin ETFs

The SEC's approval list on Wednesday included ETFs from ARK Invest (ARKK), BlackRock (BLK), VanEck, WisdomTree, Fidelity, Invesco, Franklin Templeton, Bitwise and Valkyrie.

The SEC is investigating Ethereum after its 2022 software upgrade drastically altered the way the network orders transactions. The upgrade, called the Merge, allowed people to stake their Ether to earn interest, and that raised fresh questions of whether it's a security.