After a challenging decade of attempts, spot Bitcoin Exchange-Traded Funds (ETFs) have finally gained approval in the U.S. The next milestone involves their commencement of trading on Thursday morning.
Following the green light from the Securities and Exchange Commission on Wednesday afternoon, these eagerly awaited products are set to make their debut on U.S. markets managed by the NYSE, Cboe Global Markets, and Nasdaq, with support from major trading firms committed to providing liquidity.
Technically, the buying and selling could commence as early as 4 a.m. ET (09:00 UTC) when U.S. stock exchanges open, predating the traditional daily opening ceremonies by 5 ½ hours.
These ETFs will enable nearly any retail customer to gain exposure to Bitcoin’s price through their conventional brokerage apps and accounts, while also offering traditional financial institutions a means to invest without navigating through crypto exchanges.
Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity and one of the Bitcoin ETF issuers, emphasized that these new products differ from the Bitcoin futures ETFs approved in 2021, as they invest in derivatives rather than the digital asset itself. She noted that a spot-priced exchange-traded product aligns with the firm’s belief in providing efficient ways for investors to access Bitcoin exposure.
Similarly, a spokesperson for Cboe Global Markets highlighted that these ETFs offer investors a “transparent and regulated” method to track Bitcoin’s price, marking a significant step in establishing crypto as a tradable asset class.
With 11 spot Bitcoin ETFs available, liquidity providers and market makers have diligently prepared for this day, ensuring the efficiency of the Bitcoin market amidst the anticipated surge in interest.
NYSE’s Head of Exchange Traded Products, Douglas Yones, mentioned the involvement of liquidity programs and various market makers, expressing confidence in a dynamic and liquid market on the first day.
While excitement is expected on the launch day, industry experts, including David Mann from Franklin Templeton, anticipate a more gradual increase in interest and investments, with investors possibly taking weeks or months to become comfortable with the new ETF vehicle. BlackRock’s Robert Mitchnick echoed this sentiment, emphasizing the importance of a long-term educational journey for investors, particularly wealth advisers and institutional investors unfamiliar with Bitcoin exposure solutions.