• The industry is still waiting for a spot bitcoin exchange-traded fund (ETF) product, a decade after the crypto industry first sought to launch one.
• Financial giant BlackRock’s entrance to the race for an ETF has spurred hope that the Securities and Exchange Commission will approve the long-awaited product.
• Over the past few weeks, we’ve seen half a dozen new applications for a spot bitcoin ETF in the U.S.
What is an ETF?
An exchange-traded fund (ETF) is an investment vehicle that tracks an index, commodity, or basket of assets like stocks, bonds, or cryptocurrencies. It trades on exchanges like stocks and can be bought and sold throughout the day at market prices determined by supply and demand.
Why Is Everyone Hoping For A Bitcoin ETF?
A bitcoin ETF would allow retail investors in the U.S. to gain exposure to bitcoin as an asset without having to go through the trouble of setting up a wallet or dealing with sometimes finicky crypto exchanges. Furthermore, sophisticated investors like multimillion-dollar family offices would be able to invest in a regulated (and therefore “safe”) bitcoin product.
The History of Bitcoin ETFs
In July 2013, Cameron and Tyler Winklevoss filed to launch the first ever bitcoin exchange-traded fund (ETF). However, it was not until 2021 when US regulators approved its first futures Bitcoin ETF that real progress began being made towards approving spot cryptocurrency products for mainstream investors.
BlackRock’s Entry Into The Race
Financial giant BlackRock’s entrance into the race for approval of an ETF has sparked fresh optimism within the industry that their long awaited wish may finally come true this year – 11 years after it was initially proposed by Cameron and Tyler Winklevoss back in 2013!
Will 2023 Be The Year Of The Bitcoin ETF?
Over the past few weeks we have seen many new applications for spot BTC EFTs hitting US markets which could indicate that this may be finally be possible if approved by SEC regulators later this year! Only time will tell but there is certainly hope amongst those within crypto circles that 2023 could be remembered as ‘the year of Bitcoin’.