:format(jpg "Bitcoin ETF spot sale on first trading day")
The Securities and Exchange Commission (SEC) finally relented. After six years and after rejecting more than 20 exchange eligibility documents, the SEC has approved 11 Bitcoin sites.
On Thursday, the first day of trading, the price of almost all new ETFs finally fell.
Newly confirmed Bitcoin ETFs with closing prices and daily volume:
NAME PRICE CHANGE CLOSING OF PROPERTIES IN MILLIONS. Amount in thousands.
Shares of ARK 21 Bitcoin ETF (ARKB). $46.76 -6.48% $10.32 $275.60 Bitcoin Bit on Bit Trust (BITB)
Source: Bloomberg, CNBC.com
Meanwhile, Bitcoin (BTC) rose 0.65% to hit a two-year high of $49,000 before easing to $46,090.
"The approval of the BTC Spot ETF remains a news selling event, but we believe it will be very shallow in the short term. We believe it will be great if there is a significant drop in the price of Bitcoin in the short term. Opportunity. A unique Crypto Hedge Fund in the company ZX Squared Capital investment manager CK Zheng said, "To add longer positions." The crypto farm is a hedge fund with approximately $20 million in assets under management. It was launched and registered in 2021. The fund's portfolio in the British Virgin Islands consists of 50% Bitcoin and Bitcoin derivatives and 50 % Consists of Ether (ETH).
For more than a decade, investors have demanded ETFs to provide exposure to bitcoin, the world's largest cryptocurrency. This is due to the difficulties in trading and storing cryptocurrencies. ETFs are funds that trade like stocks during market trading hours. They are bought and sold like stocks and charge lower management fees and lower trading fees than most mutual funds. Specifically, these types of ETFs are known as ETPs or Exchange Traded Products, and since 2006 have invested in vehicles for trading commodities and currencies.
The idea of the first Bitcoin spot ETF was proposed in 2013, but it wasn't until 2018 that the SEC began seriously investigating the idea. In fact, the Chicago Board Options Exchange (CBOE) listed its first Bitcoin futures contracts last year. This marks a radical change in direction for the SEC, which has allowed funds to hold bitcoin since 2018 because it is an unregulated asset with a high potential for fraud and fraud.
In 2021, the SEC approved the launch of Bitcoin futures ETFs. The first is the ProShares Bitcoin Strategy ETF (BITO).
The problem with futures-based ETFs is that they don't track the actual prices of the products they track. On the other hand, the price is based on the previous month's contract. Expiring contracts must then be converted into new futures contracts, which adds more costs to the investor.
The change began in 2022 when Greyscale Investments sued the SEC for refusing to allow a private closed-end trust called Greyscale Bitcoin Trust (GBTC) to change its bitcoin ETF credentials. GBTC started investing in Bitcoin in 2013.
In August 2023, the United States Court of Appeals for the District of Columbia Circuit ruled that the SEC did not adequately explain its reasons for rejecting the listing and trading of Greyscale's proposed ETP in a filing called the Gray Falls Order. The court overturned the gray scale decision and remanded the case to the SEC. Despite the reservations, the SEC decided to give up the fight and begin the process of listing the Bitcoin ETF in the money market.
All 11 funds launched on Thursday have similar assets, so one of the biggest differences will be the fees paid to investors.
The fund with the lowest expense ratio is the bootstrapped Bitwise Bitcoin Trust (BITB). 0.20% (currently 0.00% free)
· ARK 21Shares Bitcoin ETF (ARKB) has an expense ratio of 0.21%, but currently has a net payout of 0.00%.
· Fidelity Wise Origin Bitcoin Trust (FBTC) pays 0.25% but is currently 0.00% free.
WisdomTree Bitcoin Trust (BTCW) charges 0.30% (currently 0.00% with an abandoned fee).
· Invesco Galaxy Bitcoin ETF (BTCO) has an expense ratio of 0.39% (currently 0.00% free)
· Valkyrie Bitcoin ETF (BRRR) charges 0.49% (currently 0.00% free)
· BlackRock iShares Bitcoin Trust Expense Index (IBIT) It currently costs 0.12% with a cancellation fee of 0.25%.
· VanEck Bitcoin Trust (HODL) has an expense ratio of 0.25%
· The Franklin Bitcoin ETF (EZBC) has an expense ratio of 0.29 percent.
· Hashdex Bitcoin ETF (DEFI) is an outlier with an expense ratio of 0.90%.
· And Grayscale Bitcoin Trust (GBTC) tops the list with an expense ratio of 1.50%.