"Hmm spot BTC ETF has been approved, but the price of BTC is not excited to go up."
The entire crypto market this morning received very happy news when the Securities and Exchange Commission (SEC) finally approved 11 spot Bitcoin (BTC) ETF applications in a document that is currently inaccessible on the SEC website.
The trading world braced for the impact of the decision following Valkyrie Investments' inflow of $200 million to $400 million into ETFs alone, so here it appears the crypto market may see $4 to $5 billion inflows.
However, VanEck predicts a $1 billion increase in the first few days and then $2.4 billion, while Galaxy Digital expects $14 billion in the first year and Bitwise $72 billion over five years.
Following the new phase, the issuer has provided initial funding in which VanEck invested $72.5 million in ETFs, Bitwise for $500,000, Pantera Capital expressed interest in investing $200 million and BlackRock $10 million.
The setup phase also saw a competitive battle over follow-on fees Bitwise wanted to offer a 0.2% fee while BlackRock proposed 0.2% for the first year or until the fund reached $5 billion and after that it would implement a 0.3% fee.
There is no denying that US regulators have already approved the listing and trading of certain spot BTC ETPs today, but SEC Chairman Gary Gensler, who remains unsupportive of BTC, has said investors should be wary of the various risks the digital asset may face.
Please note that the Chicago Board Options Exchange (CBOE) also announced the spot listing of the ETF prior to approval and highlighted that trading will begin today, January 11, 2024.
As of this writing, BTC price has jumped by 2.30% to $46,751 in the last 24 hours with a market cap of $916 billion and a 9.24% rise over the last week.
