[Stock Trend] Bitcoin Spot ETF Listing Approved Investment Caution (2024)

U.S. Securities and Exchange Commission approves listing of 11 Bitcoin spot ETFs... Trading from the 11th (comprehensive)

*Source_Yonhap News

The U.S. Securities and Exchange Commission (SEC) approved the exchange listing and trading of the Bitcoin spot exchange-traded fund (ETF) on the 10th (local time). “Today, the Commission approved the listing and trading of a number of Bitcoin spot exchange-traded products (ETPs),” SEC Chairman Gary Gensler said in a statement. ETP is a higher-level concept that encompasses ETFs.

Products scheduled to be listed include BlackRock, the world's largest asset management company, Fidelity Investment, Ark Investment, Investco, Wisdom Tree, Bitwise Asset Management, Valkyrie, and Grayscale Investment.

Gansler ‘Listing and transaction approval is a sustainable path… ‘Beware of investment risks’

Bitcoin could not be easily purchased by institutional investors due to accounting regulations and various regulations, but the virtual asset industry expects that with the launch of the spot ETF, it will be able to be easily incorporated into institutional portfolios in the future. Meanwhile, Chairman Gensler emphasized, "The committee's decision today was limited to ETPs holding Bitcoin, not securities," and added, "This is not a signal that the committee intends to approve listing standards for cryptocurrency asset securities." “Investors should be cautious about the numerous risks associated with Bitcoin and products whose value is tied to cryptocurrencies,” he warned.

The cryptocurrency market cheers the listing of Bitcoin ETF. Why and what does it mean?

*Source-BBC News Korea

Investment companies that have been waiting for approval for a long time can now actively invest in Bitcoin for their customers. Bitcoin spot ETFs can now be included in everything from pension funds to investment portfolios. Cryptocurrency enthusiasts around the world are cheering enthusiastically on social media, sharing graphs and various memes saying that they will become rich.

What is ETF?

But first, what is an ETF? ETFs are funds that allow investors to bet on multiple assets without purchasing them directly. They are traded on the stock exchange like stocks, and their prices vary depending on the real-time performance of the entire portfolio. For example, you can form an ETF that includes both gold and silver prices, or you can form an ETF by mixing stocks of top IT companies and insurance companies. Some ETFs already indirectly include Bitcoin, but if a Bitcoin spot ETF is launched, Bitcoin will be purchased directly “in spot” at the current price.

Why are you so excited?

About 10 investment companies, including ‘Blackrock’ and ‘Fidelity’, are scheduled to be listed, meaning that investors can enter the world of Bitcoin speculation without having to worry about opening a digital wallet or going through a cryptocurrency exchange. And as various financial companies begin to purchase Bitcoin, billions of dollars are expected to flow into the Bitcoin market. Of course, since there are some countries where spot Bitcoin ETFs already exist, there are a few analysts who believe that this will have little effect on the Bitcoin price. However, as large American investment companies will enter the market, most believe that the price of Bitcoin will rise along with demand.

Bitcoin is the first cryptocurrency issued in 2008, originating from an idea posted online by a person calling himself ‘Satoshi Nakamoto’, and is the most valuable and famous cryptocurrency. The price of Bitcoin is also often considered a measure of the digital currency market, including several other digital coins and tokens built on blockchain technology. And now, with new capital flowing into the Bitcoin world, interest in cryptocurrency technology in general is expected to surge.

What will be the impact on cryptocurrency adoption?

A sign that Bitcoin is finally being taken seriously, at least as a speculative asset?!

A call for decentralization and a rejection of the traditional financial system?!

Judging by the current excitement felt on social media, the prevailing expectation is that the new influx of funds will make Bitcoin investors rich.

What are the risk factors for future investors?

Investors must consider this price volatility when choosing an ETF linked to Bitcoin.

Bitcoin and other cryptocurrencies are often targets of cyber attacks. Cryptocurrency companies sometimes lose hundreds of millions of dollars overnight. And if investment companies like BlackRock become major Bitcoin holders, their cybersecurity environment will also face new challenges.

Processing Bitcoin transactions and mining new coins requires many powerful computers around the world.

Listing and investment in 'Bitcoin ETF' blocked in Korea

*Source_Korea Economy

Bitcoin spot exchange-traded fund (ETF) will be listed on the U.S. stock market, but domestic investors are not expected to be able to buy or sell it. This is because financial authorities have judged that brokerage of Bitcoin spot ETF transactions by securities firms may violate current laws. According to the financial authorities on the 11th, under current law, ETFs must track an underlying index composed of underlying assets. For example, the ‘KODEX 200’ ETF tracks the KOSPI 200 index (underlying index), which is composed of KOSPI 200 stocks (underlying assets).

The Capital Markets Act recognizes △financial investment products △currency △general products △credit risk △others as underlying assets. The Financial Services Commission's interpretation is that virtual assets such as Bitcoin do not fall under the basic asset requirements. In other words, it is impossible in Korea to list an ETF with Bitcoin as the underlying asset.

Bitcoin spot ETF trading suspended in Canada and Germany

*Source_Eroun Net (https://www.eroun.net)

Mirae Asset Securities is also considering discontinuing trading in Bitcoin futures ETFs listed overseas starting in 2021. It also suspended trading in Bitcoin spot ETFs listed in Canada and Germany. The day before, the financial authorities announced that there was a potential legal violation for domestic securities firms to broker Bitcoin spot ETFs.

(Photo_Newsis) The U.S. Securities and Exchange Commission (SEC) officially approved the listing of the Bitcoin spot exchange-traded fund (ETF), which has been considered the biggest positive factor in the coin market, on exchanges, and the price of virtual currency is rising significantly. The photo shows the prices of virtual currencies such as Bitcoin and Ethereum displayed on the electronic display board of the Bithumb Customer Support Center in Seocho-gu, Seoul on the 11th.

Subsequently, suspension of trading in futures ETFs is also being considered. Bitcoin futures ETFs listed overseas include ▲Proshares Bitcoin Strategy ETF ▲Valkyrie Bitcoin Strategy ETF ▲Invesco Bitcoin Strategy ETF ▲Van Eck There are Bitcoin Strategy ETF (VanEck Bitcoin Strategy ETF) and ▲Galaxy Bitcoin Strategy ETF (Galaxy Bitcoin Strategy ETF).

*Source_National Assembly

Coin tax remaining for 1 year... Market impact ‘tactile’’

*Source_Biz Watch

• Concerns about temporary increase in sales volume in the second half of this year
• In the long term, improving the investment environment by securing financial resources
• Separate taxation as other income... 22% of sales profits imposed
• Taxation in over 60 countries... Direct hit by high tax rates in Japan and India
• Temporary contraction in the second half vs. Limited impact in rising markets

Major issues and directions for improvement in domestic virtual asset income taxation

*Source_Capital Market Research Institute report

Introduction of major sites and major issues with proven virtual asset safety and good capital and reviews