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Bitcoin ETF : A Historic Moment for the Cryptoverse

<h1>A Bitcoin ETF : A Historic Moment for the Cryptoverse</h1> <p> </p> <p>The world of cryptocurrencies has been eagerly awaiting the potential approval of a <a href="https://www.coindesk.com/policy/2024/01/09/blackrock-vaneck-update-bitcoin-etf-filing-within-hours-of-quick-sec-response/" target="_blank" rel="noopener">Bitcoin exchange-traded fund </a>(ETF) in the United States, and the wait is almost over. The U.S. Securities and Exchange Commission (SEC) has set a deadline of January 10, 2024, for making a decision on several pending applications from major investment firms.</p> <p>Read about bitcoins 42k milestone <a href="https://wizardia.io/blog/bitcoin_hits_42k" target="_blank" rel="noopener">here</a>.</p> <p> </p> <h2 id="a-decade-of-waiting">A Decade of Waiting</h2> <p> </p> <p>The <a href="https://www.coindesk.com/markets/2017/03/09/from-first-filing-to-final-decision-the-journey-of-the-winklevoss-bitcoin-etf/" target="_blank" rel="noopener">first spot Bitcoin ETF application</a> was filed back in 2013, and for the past decade, every single proposal has been rejected. This roller coaster of anticipation and disappointment has left many in the crypto community wondering if a spot Bitcoin ETF will ever truly come to fruition.</p> <p>However, recent developments suggest that the SEC may be more open to the idea of approving a spot Bitcoin ETF. In recent months, the SEC has held a series of public hearings on the topic, and there has been a growing consensus among regulators that a spot Bitcoin ETF could be a viable investment vehicle.</p> <p> </p> <h2 id="potential-impact-of-etf-approval">Potential Impact of ETF Approval</h2> <p> </p> <p>If the <a href="https://www.sec.gov/" target="_blank" rel="noopener">SEC</a> approves a spot Bitcoin ETF, it could have a profound impact on the cryptocurrency market. Institutional investors, which have been largely hesitant to invest in cryptocurrencies due to their lack of regulation, would be able to gain exposure to <a href="https://bitcoin.org/en/" target="_blank" rel="noopener">Bitcoin</a> through an ETF. This could lead to billions of dollars of institutional capital flowing into the crypto market, which could drive up the price of Bitcoin and other cryptocurrencies.</p> <p> </p> <h2 id="fee-wars-and-early-demand">Fee Wars and Early Demand</h2> <p> </p> <p>ETF issuers are already gearing up for the potential approval of a spot Bitcoin ETF, and they are competing for the attention of early investors. In a sign of the strong demand expected for spot Bitcoin ETFs, some issuers have already begun lowering their fees. <a href="https://www.grayscale.com/" target="_blank" rel="noopener">Grayscale</a>, the largest Bitcoin trust in the world, has reduced its fees from 2% to 1.5%. <a href="https://www.blackrock.com/corporate/global-directory" target="_blank" rel="noopener">BlackRock</a>, another major asset manager, has cut its fees from 0.3% to 0.2% for the first 12 months of trading, or until the ETF reaches $5 billion in trading volume, whichever comes first. <a href="https://www.ark-invest.com/" target="_blank" rel="noopener">Ark Invest</a>, a prominent investment firm, has lowered its fees from 0.8% to 0.25% and waived fees altogether for the first six months of trading, or until the ETF reaches $1 billion in trading volume, whichever comes first.</p> <p> </p> <h2 id="a-glimmer-of-hope-for-the-cryptoverse">A Glimmer of Hope for the Cryptoverse</h2> <p> </p> <p>The potential approval of a spot Bitcoin ETF is a major step forward for the crypto industry. It would legitimize Bitcoin as a legitimate investment asset and open up the door to a wave of institutional investment. While the SEC's decision is still uncertain, the signs are pointing towards a positive outcome. If the SEC does approve a spot Bitcoin ETF, it could be a watershed moment for the crypto industry, marking the beginning of a new era of institutional adoption and mainstream acceptance.</p> <p> </p> <h2 id="who-has-applied-so-far">Who has applied so far?</h2> <p data-sourcepos="1:1-1:162">The SEC has received several applications for Bitcoin ETFs. The following is a list of the companies that have submitted applications to the SEC for Bitcoin ETFs:</p> <ul data-sourcepos="3:1-12:51"> <li data-sourcepos="3:1-3:65">Grayscale </li> <li data-sourcepos="4:1-4:48">BlackRock</li> <li data-sourcepos="4:1-4:48">VanEck filed</li> <li data-sourcepos="5:1-5:49">Fidelity filed </li> <li data-sourcepos="7:1-7:49">WisdomTree</li> <li data-sourcepos="8:1-8:52">Ark Invest</li> <li data-sourcepos="9:1-9:57">Invesco Galaxy </li> <li data-sourcepos="10:1-10:52">21 Shares </li> <li data-sourcepos="11:1-11:50">Bitwise </li> <li data-sourcepos="12:1-12:51">Hashdex </li> </ul> <p> </p> <p>But bitcoin isnt everything.... <a href="https://wizardia.io/blog/altseason-coming" target="_blank" rel="noopener">Alt season</a> could be upon us too!</p> <p> </p>

3 min read
Jan 9, 2024
Ryan Turnbull
Read this article

A Bitcoin ETF : A Historic Moment for the Cryptoverse

 

The world of cryptocurrencies has been eagerly awaiting the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States, and the wait is almost over. The U.S. Securities and Exchange Commission (SEC) has set a deadline of January 10, 2024, for making a decision on several pending applications from major investment firms.

Read about bitcoins 42k milestone here.

 

A Decade of Waiting

 

The first spot Bitcoin ETF application was filed back in 2013, and for the past decade, every single proposal has been rejected. This roller coaster of anticipation and disappointment has left many in the crypto community wondering if a spot Bitcoin ETF will ever truly come to fruition.

However, recent developments suggest that the SEC may be more open to the idea of approving a spot Bitcoin ETF. In recent months, the SEC has held a series of public hearings on the topic, and there has been a growing consensus among regulators that a spot Bitcoin ETF could be a viable investment vehicle.

 

Potential Impact of ETF Approval

 

If the SEC approves a spot Bitcoin ETF, it could have a profound impact on the cryptocurrency market. Institutional investors, which have been largely hesitant to invest in cryptocurrencies due to their lack of regulation, would be able to gain exposure to Bitcoin through an ETF. This could lead to billions of dollars of institutional capital flowing into the crypto market, which could drive up the price of Bitcoin and other cryptocurrencies.

 

Fee Wars and Early Demand

 

ETF issuers are already gearing up for the potential approval of a spot Bitcoin ETF, and they are competing for the attention of early investors. In a sign of the strong demand expected for spot Bitcoin ETFs, some issuers have already begun lowering their fees. Grayscale, the largest Bitcoin trust in the world, has reduced its fees from 2% to 1.5%. BlackRock, another major asset manager, has cut its fees from 0.3% to 0.2% for the first 12 months of trading, or until the ETF reaches $5 billion in trading volume, whichever comes first. Ark Invest, a prominent investment firm, has lowered its fees from 0.8% to 0.25% and waived fees altogether for the first six months of trading, or until the ETF reaches $1 billion in trading volume, whichever comes first.

 

A Glimmer of Hope for the Cryptoverse

 

The potential approval of a spot Bitcoin ETF is a major step forward for the crypto industry. It would legitimize Bitcoin as a legitimate investment asset and open up the door to a wave of institutional investment. While the SEC's decision is still uncertain, the signs are pointing towards a positive outcome. If the SEC does approve a spot Bitcoin ETF, it could be a watershed moment for the crypto industry, marking the beginning of a new era of institutional adoption and mainstream acceptance.

 

Who has applied so far?

The SEC has received several applications for Bitcoin ETFs. The following is a list of the companies that have submitted applications to the SEC for Bitcoin ETFs:

  • Grayscale 
  • BlackRock
  • VanEck filed
  • Fidelity filed 
  • WisdomTree
  • Ark Invest
  • Invesco Galaxy 
  • 21 Shares 
  • Bitwise 
  • Hashdex 

 

But bitcoin isnt everything.... Alt season could be upon us too!

 

Ryan Turnbull

Ryan Turnbull

Introducing Ryan Turnbull, a passionate Australian Chief Vibe Officer at Wizardia. Among many things, Ryan builds Wizardia’s community, creates captivating live streams, forms partnerships with other web3 projects, and produces engaging video and blog content. With his expertise, Ryan introduces crypto gaming to both masters and beginners, fostering a vibrant, exciting and supportive environment.

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