Anticipation about the launch of spot bitcoin ETFs is peaking late Wednesday after the Securities and Exchange Commission greenlit such funds for trading on U.S. exchanges. Todd Rosenbluth, head of research at VettaFi, said in a phone interview that he’s watching for one or more spot bitcoin exchange-traded funds to come to market as soon as Thursday.
The SEC gave its assent to about a dozen spot bitcoin ETFs on Wednesday. “Given that there are so many horses in this race,” said Rosenbluth, “you want to come out strong.” Several firms, including the world’s largest asset manager, BlackRock
BLK,
-0.27%,
have filed regulatory documents to list spot bitcoin ETFs. Typically, once an ETF receives SEC approval, the fund is cleared to launch as soon as the next trading session or in the coming days or weeks, according to Rosenbluth. It depends on what the asset manager deems appropriate as it lines up “seed capital” and prepares for distribution, but with high investor anticipation surrounding this history-making listing of spot bitcoin ETFs, asset managers may feel compelled to move extraquickly, Rosenbluth said. “Anybody that doesn’t launch on the first day” risks being at a “significant disadvantage,” as investors who have been eager to gain exposure to the spot, or up-to-the-minute, price of bitcoin can be expected to buy in fast, according to Rosenbluth.Liquidity matters For investors, the cost of the funds will be among the “key things to evaluate,” along with their liquidity, level of assets and how closely they track the spot price of bitcoin, according to Nate Geraci, president of wealth-management firm the ETF Store. Grayscale Investments’ spot bitcoin ETF would have “built-in liquidity” as it would be converted from the firm’s existing Grayscale Bitcoin Trust
GBTC,
which already has a “massive” investor base, Geraci said in a phone interview. The fund had almost …
Article Attribution | Read More at Article Source
The SEC gave its assent to about a dozen spot bitcoin ETFs on Wednesday. “Given that there are so many horses in this race,” said Rosenbluth, “you want to come out strong.” Several firms, including the world’s largest asset manager, BlackRock
BLK,
-0.27%,
have filed regulatory documents to list spot bitcoin ETFs. Typically, once an ETF receives SEC approval, the fund is cleared to launch as soon as the next trading session or in the coming days or weeks, according to Rosenbluth. It depends on what the asset manager deems appropriate as it lines up “seed capital” and prepares for distribution, but with high investor anticipation surrounding this history-making listing of spot bitcoin ETFs, asset managers may feel compelled to move extraquickly, Rosenbluth said. “Anybody that doesn’t launch on the first day” risks being at a “significant disadvantage,” as investors who have been eager to gain exposure to the spot, or up-to-the-minute, price of bitcoin can be expected to buy in fast, according to Rosenbluth.Liquidity matters For investors, the cost of the funds will be among the “key things to evaluate,” along with their liquidity, level of assets and how closely they track the spot price of bitcoin, according to Nate Geraci, president of wealth-management firm the ETF Store. Grayscale Investments’ spot bitcoin ETF would have “built-in liquidity” as it would be converted from the firm’s existing Grayscale Bitcoin Trust
GBTC,
which already has a “massive” investor base, Geraci said in a phone interview. The fund had almost …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]