Bitcoin (BTC) surpassed $45,000 after several potential issuers of ETFs (Exchange-Traded Funds) with direct exposure to the cryptocurrency submitted amended filings to the SEC, the equivalent of the Securities and Exchange Commission in the United States. This move is seen by analysts as a final push to offer these investment products.
Around 1:30 PM on this Monday (8th), the largest cryptocurrency in the market is trading at $45,049, with a gain of +1.80%, according to the aggregator CoinMarketCap. Over the week, BTC has gained +5.10%. In the last 12 months, the cryptocurrency has appreciated by +166%, driven by optimism about the ETF, which is unprecedented in the U.S. and could attract $100 billion over time, according to estimates from Bloomberg Intelligence.
In this article, the klever team will reply the frequent ask: when will the bitcoin etf be approved?
What is an ETF?
An Exchange-Traded Fund (ETF) is a type of investment fund that combines elements of both mutual funds and individual stocks. ETFs are traded on stock exchanges, much like individual stocks, making them a popular and easily accessible investment vehicle for a wide range of investors. They provide a way for investors to gain exposure to a diversified portfolio of assets, such as stocks, bonds, commodities, or a combination of these, without having to buy each security individually.
ETFs are traded on stock exchanges throughout the trading day, allowing investors to buy btc and sell shares at market prices. This intraday trading flexibility contrasts with mutual funds, which are priced at the end of each trading day. ETF investors can take advantage of price fluctuations and execute various trading strategies, such as limit orders and short selling.
Cryptocurrencies and ETFs
The last few months have been a busy time for ETFs all over the web. Just a few days after the announcement of a request for a bitcoin ETF by the giant ArkInvest and BlackRock, the possibility of approval for another ETF, now for Ethereum, was also raised.
Currently the second largest cryptocurrency on the market, Ethereum is also in the sights of major investments by institutional investors.
It’s clear that the ETF closest to being approved is Bitcoin, but it’s important to note that there is a possibility that this same ETF will be approved for other cryptocurrencies in the coming months, raising great expectations for investors in the market.
When will the Bitcoin ETF be approved?
The U.S. capital market regulator has until Wednesday, the 10th of 2024, to approve or reject the request made by Ark Invest, led by veteran fund manager Cathie Wood. However, experts believe that a batch of applications may be released simultaneously.
In addition to Ark, asset management firms such as BlackRock, Invesco, Fidelity, and Hashdex are attempting to list a Bitcoin exchange-traded fund (ETF) in the U.S. Last week, several issuers submitted to the regulator a final version of a significant form, called 19b-4, according to sources cited by Bloomberg.
In late December, some issuers also designated authorized participants – brokers responsible for handling the creation and redemption of ETF unit baskets. Among them are Jane Street Capital, a brokerage that was the “birthplace” of the founder of FTX, and JPMorgan.
If you choose to acquire this asset, do not forget to use a btc wallet to securely store it.
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