How the launch of spot ETFs could curb Bitcoin volatility
FalconX’s Vivek Chauhan and David Lawant say a wave of Bitcoin exchange-traded fund approvals will lead to a more mature market structure.
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FalconX’s Vivek Chauhan and David Lawant say a wave of Bitcoin exchange-traded fund approvals will lead to a more mature market structure.
U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) hold $27 billion in BTC. The majority of assets under management (AUM) is held by the Grayscale Bitcoin Trust (GBTC), valued at $25.3 billion.
The company revealed that shareholders have until January 30 to sell their shares in the VanEck Bitcoin Strategy ETF (XBTF).
Ten years after it was first proposed, a spot Bitcoin ETF has finally launched in the United States. What happens next.
The Bitcoin Spot ETF was approved today and will be available for trading tomorrow. So, why are Bitcoin ETFs so important?
Valid S-1 approval is pending, meaning the spot Bitcoin ETF could begin trading as early as January 11, U.S. time.
If the ETF is approved, only time will tell whether $1 billion to $2.4 billion will flow into the ETF as expected.
Transparency regarding on-chain proof remains pivotal for the approval of spot Bitcoin ETFs. Despite the anticipation for approval, the lack of verifiable on-chain proofs from existing applicants raises skepticism. ETF issuers emphasizing genuine Bitcoin holdings may bolster trust. However, security concerns and fee competitions complicate the landscape. The SEC's expected decision by January 10 carries significant weight, although the possibility of rejection due to regulatory deliberations remains a concern.
Applications for Bitcoin spot ETFs in the US market have entered a peak period, and the Bitcoin halving is expected to be around the end of April 2024. Therefore, whether the spot EFT is approved this time has become the focus of the industry.
Outflows of Bitcoin from exchanges have hit a yearly high, but inflows to Canadian Bitcoin ETFs are also at peak levels as investor confidence in the asset grows.