I have been waiting for this day for a long time. Companies have been trying to launch a Bitcoin spot ETF for a while now, but the SEC has never allowed it to happen. I always knew that they would one day have to approve one. Fortunately, they have…. along with 10 others.
Blackrock, Ark, WisdomTree, Invesco, Bitwise, VanEck, Franklin, Fidelity, Valkyrie, Grayscale, and Hashdex all got approved for a Bitcoin ETF, and these funds will start trading tomorrow, January 11th. Companies have been trying to launch a Bitcoin spot ETF for over a decade now as the first one proposed was back in 2013 by the Winklevoss twins. They got denied along with several others after them. Bitcoin Futures ETFs (doesn’t hold Bitcoin directly but instead buys Bitcoin futures contracts) were approved but never a Spot Bitcoin ETF (actually holds Bitcoin).
The reason that I am so excited for this and believe that this will be amazing for Bitcoin is due to several reasons. First, a Spot Bitcoin ETF makes it easier to start investing in Bitcoin. The reason for this is because one can now buy Bitcoin like a stock. They don’t have to worry about storing their crypto safely in a wallet (which can be difficult especially for people new to crypto). They can simply buy and sell Bitcoin in their brokerage accounts like any other stock or ETF.
Second, a Spot Bitcoin ETF makes it easier to store Bitcoin in a tax-free retirement account like a Roth IRA or 401k. This is something that I am very excited about, myself. I am a firm believer in Bitcoin, and I definitely want the asset in my Roth IRA. Since I believe that Bitcoin will keep increasing in value over the long-term, I want it in my Roth IRA so that when I do sell it one day, I won’t have to pay taxes.
Third, a Spot Bitcoin ETF makes it possible for people to trade option contracts on Bitcoin. This is something I have seen a huge demand for. Investors will now be able to place call and put options on Bitcoin through this ETF.
I am very excited for this news. While I don’t know how this will affect the price of Bitcoin in the short-term, I have no doubt that this will be great for Bitcoin in the long run. That said, this article is for information purposes only and should not be taken as financial advice.
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Finance by CWT 