The cryptocurrency world has reached a turning point. The Securities and Exchange Commission of America has approved a Bitcoin ETF. Yes, it happened. Although many skeptics said that approval should not be expected before February. Now the cryptocurrency industry is open to ordinary investors.
What is a Bitcoin ETF
Before making forecasts and analyzing the news, you need to understand what a “bitcoin ETF” is.
ETF – Exchange traded fund. That is, an investment fund. This is where the portfolio of assets is formed. Then shares will be issued that are tied to the formed assets. In our case, a certain balance of Bitcoins will accumulate. Shares will be linked to cryptocurrency. Accordingly, ordinary investors will invest in these same shares. That is, investment will be made in cryptocurrencies, but not directly.
Bitcoin ETF approval in detail
The SEC approved the applications of 11 funds. Shares that are pegged to BTC will be traded on multiple platforms. There will be 3 funds operating on the New York Stock Exchange. 2 funds will operate on the Nasdaq exchange. In addition, the funds' shares will be listed on the Chicago Board Options Exchange. Trading starts today (Thursday, January 11, 2024)
Issuer commissions will range from 0.2 – 1.5%. Some funds offer shares with zero commission.
What to Expect from Bitcoin ETF Approval
Experts say that ETFs are an opportunity to transfer standard financial products from Wall Street to digital assets. This statement was made to Trust Machines CEO Muneb Ali.
John Wu (President of Ava Labs) believes that approval gives the cryptocurrency legitimacy. In essence, it turns out that with its approval, the SEC officially recognizes cryptocurrencies as financial instruments. This is recognition on a global scale.
The SEC's decision will trigger a continued rise in the Bitcoin rate. Cryptocurrency No. 1 will pull all other digital assets with it. This is due to the fact that the cryptocurrency world will receive billions of dollars in injections. You understand that demand will increase. Next comes the cost.
So, let's fix the current position of the exchange rate. At the time of writing (7.48 am Kyiv time. 01/11/2024). Bitcoin: 46049.60. Ethereum: 2593.43. USDT: 0.99. BNB: 305.63. Solana: 99.52. The rate is indicated in dollars. I will specifically save the screenshot from Coinmarketcap. I will periodically compare it with the current exchange rate position. I wonder whether Bitcoin will reach $100 thousand by the end of the year or not.
