Why Crypto and Wall Street Aspire to Spot Bitcoin ETFs

Investors looking to bet on Bitcoin may soon have more options to choose from. Large financial companies, including black rock, loyalty And Invesco have submitted applications to sell “spot” in the United States exchange traded funds directly linked to Bitcoin holdings, and Grayscale Investments LLC won an August 29 Court decision in its efforts to turn its Bitcoin trust into an ETF. In the past, the United States Securities and Exchange Commission has consistently rejected these products, citing its wariness of volatility and potential manipulation. But the Grayscale decision and the BlackRock file in particular, could show that the cryptocurrency sector is taking over.

ETFs, a $7 trillion industry, are part of a broader family of products known as exchange-traded products, although people frequently use the term “ETF” to refer to them all, as they are by far the largest and most common category. popular. Cryptocurrency companies and major financial institutions on Wall Street are trying to launch some sort of ETF that actually contains Bitcoin, as opposed to products that invest in Bitcoin futures. Futures-backed Bitcoin ETFs have been available to US customers since 2021, but the SEC has not approved any applications for so-called spot Bitcoin ETFs. Issuers and investors are advocating for spot Bitcoin ETFs to also be available to retail and institutional investors in the United States, a development that is seen as having the potential to significantly broaden participation in the cryptocurrency sector.


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