Finally, the United States Security Exchange Commission approved the spot Bitcoin exchange-traded funds for 11 applications. Companies including Grayscale, Fidelity, iShares, and ARK 21Shares have received a nod for their ETFs. After a decade, the regulatory body has shed the green light after a series of rejections.
The arrival of the spot Bitcoin ETF has ignited fierce competition among the applicants to get the spotlight. Adding fuel to the fire are strategic fee cuts from major players like Ark and BlackRock, further intensifying the competitive landscape and highlighting their unwavering faith in a positive outcome.
The SEC has a long and somewhat unpredictable history with Bitcoin ETFs, having rejected ARK 21Shares’ initial application last January, citing insufficient safeguards against fraudulent activities. The recent Grayscale court victory was considered a partial victory for the approval of ETFs.
Earlier, Analysts from Standard Chartered suggested that ETFs may attract a substantial inflow of $50 billion to $100 billion in the current year. In contrast, some other analysts anticipate a more gradual increase, predicting inflows of approximately $55 billion spread out over a five-year period.
A Bitcoin ETF, particularly one with a competitive fee structure like ARK 21Shares’ 0.21%, could unlock significant inflows from institutional investors seeking exposure to the world’s most popular cryptocurrency. This, in turn, could propel Bitcoin prices to new highs, triggering a potential bull run across the broader digital asset market.
Reportedly, a flurry of fee reductions on Bitcoin ETFs has ignited renewed interest in the cryptocurrency, potentially paving the way for broader adoption. Two major players, Ark/21Shares and BlackRock, slashed their fees this morning, following a similar move by VanEck earlier this week.
In the dynamic crypto world, the approval of spot Bitcoin ETF could be a game-changer in attracting more investors. The SEC’s decision could possibly help traders gain exposure to the crypto market without the direct impact of the highly volatile asset.
