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Author: Admin | 2025-04-27
More than 10 years after the first filing, the U.S. Securities and Exchange Commission finally approved a spot bitcoin exchange-traded fund. In fact, the SEC approved 11 spot bitcoin ETFs, giving investors options right off the bat. Trading began Thursday, January 11.Which ETF will reign supreme is up for debate. But one thing is clear: Spot bitcoin ETFs are the best option on the fund market for bitcoin investors.What Is a Spot Bitcoin ETF?“Spot bitcoin ETF” is just the official name for an ETF that holds bitcoin. The performance of these ETFs should follow bitcoin prices closely, minus fees and the fund’s trading costs.A spot price is the immediately available price of a security. Futures prices, on the other hand, represent prices at a future date. Stocks and bonds trade at spot prices (that is, current prices), while products like commodities trade at future prices (which allows buyers to lock in a specific price and complete the transaction at a future date).The only reason we call the newly approved ETFs “spot bitcoin” is because bitcoin futures ETFs made their debut first. Bitcoin futures ETFs entered the market in October 2021. If a spot bitcoin ETF had been approved first, we may well have simply called them “bitcoin ETFs.”Investors don’t need to take a stance on bitcoin. Fear of missing out is a poor investment strategy, and investors should only invest in these ETFs if they see value in doing so.Below are a few considerations when deciding whether to invest in spot bitcoin ETFs.Spot Bitcoin ETFs Are a Better Option Than AlternativesFeesThe SEC’s decision to approve multiple filings at the same time created fierce fee competition between issuers during the application process, which is good for investors. Lower fees and costs become paramount to attracting new assets, leading issuers to come
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