- The US SEC accepted Bitcoin ETF applications of six companies to review.
- The companies include BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, and Invesco.
- NYDIG shared positive comments and bullish beliefs on the approval of the spot Bitcoin ETF.
The US Securities and Exchange Commission (SEC) has decided to review the applications from six major companies to create spot bitcoin exchange-traded funds. The companies whose Bitcoin ETF applications are accepted by the SEC include BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, and Invesco.
While the SEC has initiated the first step toward considering the Bitcoin ETF applications of the companies, a leading Bitcoin company, the New York Digital Investment Group (NYDIG), in its recent analysis, shared insights on the major dramatic changes the Bitcoin community could witness following the approval of a spot Bitcoin ETF.
As per NYDIG’s research, a spot ETF would be advantageous as it could help resolve some inconveniences in the current investment options in Bitcoin. Compared to other options including private funds and trusts, ETF is supposed to have a lesser tracking error and better liquidity. Though the expected fee of trading spot Bitcoin ETFs is still obscure, the research hinted that the expenses on a spot ETF would be possibly low.
With the arrival of a spot ETF, investors could depend on ETF as a reliable choice, securing their protection. Also, Bitcoin ETFs would presumably make BTC trading easier and more convenient, bestowing the community a better means to report positions, measure risks and pay taxes. Providing a striking analogy between BTC and gold, NYDIG added:
Bitcoin is about 3.6x more volatile than gold, meaning that on a volatility equivalent basis, investors would require 3.6x less bitcoin than gold on a dollar basis to get as much as risk exposure. Still, that would result in nearly $30B of incremental demand for a Bitcoin ETF.
NYDIG’s bullish belief on the spot Bitcoin ETF is not indicative of an overall positive approach. Previously, the financial services company JPMorgan commented that Bitcoin ETFs would not have much influence in the market, reflecting on their failure in the overseas market.
BlackRock’s Bitcoin ETF filing stirred the Bitcoin community, as BTC aspirants have started accumulating BTC. Anthony Pompliano, the founder of Pomp Investments recently commented, “The Great Accumulation Race is Underway.”
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