Spot Bitcoin ETFs Are Set to Start Trading Tomorrow
The approval of 11 spot Bitcoin ETFs by the SEC suggests that trading for these ETFs is anticipated to kick off as early as January 11. Bloomberg ETF analyst James Seyffart, indicating that the S-1 prospectuses are going effective, shared the news on X and suggested that everything is in order for the trading to begin.
In a previous statement on January 2, Seyffart, anticipating the approval, expected a spot Bitcoin ETF to launch within a few days. However, after the approval was granted, he updated his forecast, suggesting that they could begin trading within a day of receiving approved S-1s. He adjusted his prediction once more as the approvals kept coming in. Traditionally, previously approved crypto-related ETF products were known to launch within two weeks of approval.
The first SEC-approved Bitcoin-linked ETF, ProShares’ Bitcoin Strategy ETF (BITO), received approval on October 11, 2021, and commenced trading eight days later on October 19, 2021. Similarly, Valkyrie's addition of Ether futures to its existing Bitcoin Strategy ETF was approved on September 28 and began trading seven days later on October 5. Seyffart said this isn’t like the futures ETF. The process is different so it could theoretically be weeks but he thinks it will be days.
Inflows Into Spot Bitcoin ETFs Might Surpass The Total Assets of 163 Crypto ETPs
Meanwhile, VanEck, a global fund manager, had initially projected approximately $2.4 billion in inflows into spot Bitcoin products for the first quarter of 2024. Taking a broader perspective, crypto investment fund Bitwise anticipates that spot Bitcoin ETFs will emerge as the most successful ETF product ever introduced, potentially amassing an impressive $72 billion in assets under management within the next five years. Despite these optimistic outlooks, not all experts share the belief that Bitcoin ETFs will swiftly break records. According to Gabor Gurbacs, an adviser at VanEck, the initial phase of Bitcoin ETFs might be perceived as underwhelming, yet could eventually attract trillions of dollars in new capital to the industry over the long term.
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