The spot Bitcoin exchange-traded funds (ETF) have been on everyone's lips for the past couple of months, driving the upsurge in major cryptocurrencies, as the product's approval could be a game-changer for crypto investors and could happen as soon as this week.
The spot Bitcoin ETFs will help with tracking the cryptocurrency's price more closely than it has been possible so far. Furthermore, as these funds will be holding Bitcoin rather than derivatives, the exchange is expected to be more transparent, making the whole ordeal easier. A fee for shareholders in the form of expense ratios will still be charged. Bitwise Inc. Chief Investment Officer Matt Hougan previously mentioned that US-listed spot Bitcoin ETFs could garner $55 billion in net inflows during the next five years.
The launch of the product is now largely anticipated to happen sometime this week, with investors waiting on the US Securities and Exchange Commission's approval. As per a US media report, the agency is expected to use the January 10 deadline to reveal its final decision on a couple of applications at once. Eleven potential issuers, among which are Grayscale Investments, Bitwise, BlackRock, Inc., and Fidelity Investments, could all get a green light. Bitwise sent a complete S-1 filing to the SEC earlier today. However, the agency will first need to approve the 19b-4 filings turned in last Friday, and then give a go-ahead to the S-1 form, which can then come into effect. After this, the funds will be able to start trading the next day.
Bitcoin surged 3.77% at 12:58 pm ET, going for $45,605. Ethereum jumped 3.88% at the same moment, selling at $2,307.
