Exchange Traded Fund (ETF) based on bitcoin will be listed on the New York Stock Exchange as early as the 11th (local time). The U.S. securities authorities approved Bitcoin spot ETF for the first time. Following the decision by the authorities, Bitcoin has established itself as an institutional asset traded on Wall Street.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), said in a statement released on Wednesday, “The committee approved the listing and trading of a number of ETFs.” ETP is a concept that encompasses ETFs. “The court judged that the SEC failed to adequately explain why it disapproved spot ETFs,” Gensler said. “Considering such background, I think approving spot ETFs for Bitcoin is the most sustainable path.”
With the SEC’s approval, 11 spot ETFs applied by BlackRock, Ark Investment and Fidelity Investment will be allowed to be listed on the New York Stock Exchange. Most of the funds are expected to start trading on the 11th. In the case of the previously launched Bitcoin futures ETF, the actual demand for Bitcoin was not significant based on the Chicago Mercantile Exchange’s (CME) Bitcoin futures index. In the case of this spot ETF, on the other hand, ETF inflow funds lead to actual bitcoin purchases. Wall Street predicts that the launch of spot ETFs will improve reliability and access to investment in Bitcoin, which will bring in up to 100 billion U.S. dollars in new funds. The virtual asset industry has even greater expectations. “The wealth shift is underway,” said Mike Novogratz, CEO of Galaxy Digital. “As wealth is transferred from the baby boomers to the MZ generation, up to 225 billion dollars will flow into virtual assets.”
The price of Bitcoin is $46,000, which remains unchanged from before the SEC’s announcement. The buying trend, which is expected to increase demand, and the selling trend of “buy on rumors and sell on news” are balanced. However, for now, foreign investors are unlikely to be able to invest in Bitcoin ETFs listed on the U.S. stock market. This is because the financial authorities judge that securities companies broker ETF transactions may violate the Capital Markets Act.
TED PARK
ASIA JOURNAL
