5 Bitcoin ETFs to Look Out For in 2024
The introduction of Bitcoin ETF is set to reshape the dynamics of crypto investment and trading, opening doors to a wider audience of potential enthusiasts and investors.
What are the first Bitcoin ETFs of January 2024?
Here are some of the first Bitcoin ETFs to announce the launch in 2024:
ProShares Bitcoin Strategy ETF (BITO)
ProShares Short Bitcoin ETF (BITI)
Valkyrie Bitcoin Strategy ETF (BTF)
VanEck Bitcoin Strategy ETF (XBTF)
Simplify Bitcoin Strategy PLUS Inc ETF (MAXI)
Global X Blockchain & Bitcoin Strategy ETF (BITS)
What are the benefits of Bitcoin ETF for users?
BTC-ETF, or Bitcoin Exchange-Traded Fund, Represents a major step forward in simplifying and streamlining the process of investing in Bitcoin. Bitcoin ETF offers users the opportunity to gain exposure to Bitcoin without the complexities associated with owning and storing the underlying asset.
This innovation is poised to enhance accessibility, liquidity and transparency, making it easier for both institutional and retail investors to participate in the crypto market.
With BTC-ETF, users can potentially benefit from the price movements of Bitcoin through a traditional brokerage account, thus bridging the gap between traditional finance and the crypto space.
What is the approval history of ETF Bitcoin?
The journey of Bitcoin ETF (Exchange-Traded Fund) approval has been marked by significant milestones and unexpected turns. Here's a brief history of its approval process:
Approval Application
Grayscale Investments, a digital currency asset manager, announced its intention to convert its $30 billion Bitcoin Trust into an ETF, aiming to launch one of the first such products in the US and the world's second-largest commodity-based ETF. The trust, established in 2013, became publicly quoted in 2015 and an SEC reporting company in 2020.
Fake Tweet
The approval process encountered a dramatic turn when the SEC's X (formerly Twitter) account posted a statement from Gensler, the SEC Chair, announcing the approval of spot Bitcoin ETFs. However, the SEC swiftly retracted the post, attributing it to a compromised account. This erroneous tweet caused significant price volatility, leading to nearly $90 million worth of Bitcoin long and short positions being liquidated.
Final Approval
Despite the setback caused by the fake tweet, a day later, the approval for the Bitcoin ETF was confirmed, marking a significant milestone in the crypto industry and potentially setting Bitcoin price at $46,200 as of today (January 11, 2024). This final approval comes after years of anticipation and efforts from various entities, solidifying the trust's transition into an ETF and representing a major development in the world of digital asset investment products.
Is Bitcoin ETF better than crypto exchanges?
When considering the utilization of BTC-ETF versus traditional crypto exchanges, it's essential to weigh the advantages and drawbacks of each option.
While Bitcoin ETF offers the convenience of accessing Bitcoin through familiar investment channels, crypto exchanges provide a more direct and hands-on approach to acquiring and trading cryptocurrencies.
Crypto exchanges empower users with the ability to engage in staking, yield farming, and participation in emerging token sales, unlocking a broader spectrum of opportunities for generating returns.
The control and flexibility offered by crypto exchanges, combined with the potential for higher returns and engagement in the DeFi ecosystem, make them a compelling choice for those seeking a more dynamic and interactive crypto experience.
You could also argue that the exchanging price rate could be generally more appealing with exchange services, as implied by Forbes.
In conclusion, the launch of Bitcoin ETF heralds an exciting new phase in the evolution of the crypto industry, offering investors and enthusiasts an alternative avenue to engage with Bitcoin. Whether through BTC-ETF or crypto exchanges, the expanding landscape of investment opportunities underscores the growing relevance and potential of the digital asset space, paving the way for a more inclusive and diversified financial future.
Find out more information on what can influence the BTC price surge in our blog post
