Bitcoin ETFs begin trading in end to decade-long tussle with SEC
economictimes.indiatimes.comspot price of bitcoin began trading in the U.S. on Thursday in a landmark moment for the cryptocurrency industry that has been seeking regulatory approval for the financial product for over a decade.
The green light by the U.S. Securities and Exchange Commission finally came late on Wednesday following months-long talks with top asset managers such as BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck.
The regulator approved 11 such ETFs, paving the way for popularizing investments in the world's biggest crypotcurrency without the risk of holding the digital token directly.
«The approval has the potential to simplify and secure Bitcoin investments for a broader investor base, which may reshape the dynamics of cryptocurrency investments,» said Rajeev Bamra, senior vice-president of digital finance at Moody's Investors Service.
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View Details» BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust, Valkyrie Bitcoin Fund and ARK 21Shares Bitcoin ETF, among others, have begun trading.
RACE FOR MARKET SHARE
The regulatory nod is expected to start an intense competition for market share among the issuers who have already lowered the fees for the products well below the U.S. ETF industry's standard.
Analysts at Bernstein estimated that bitcoin ETF flows will build up gradually to cross $10 billion in 2024 in its race to $80 billion by the end of next year.
«Bitcoin ETFs are expected to be an intensely competitive asset accumulation game, with 11 leading asset managers launching together,» the brokerage said in a note.
