Comment
Author: Admin | 2025-04-27
As the ProShares Short Bitcoin Strategy ETF. This uses futures to generate the inverse of bitcoin's returns, allowing investors to profit on days when cryptocurrency prices decline. Investment funds can also directly trade and hold cryptocurrencies. Spot crypto ETFs are funds that buy cryptocurrencies and securitize them. Investors buy and sell shares as needed, just like a traditional ETF. In a spot crypto ETF, the fund can issue and redeem shares, offering retail and other investors a stake in the crypto market. Starting in 2014, asset managers sought approval from the SEC for spot bitcoin ETFs. Between October 2022 and October 2023, the SEC received more than 3,500 crypto-related fund applications. In January 2024, the SEC approved the first 11 spot bitcoin ETFs, opening the door to more spot cryptocurrency ETFs later.In January 2024, the Securities and Exchange Commission approved the first 11 bitcoin spot ETFs for U.S. markets. On their first trading day, they had about $4.6 billion in trading volume. In May 2024, the SEC also started to pave the way for spot ether ETFs. The SEC approved a rule change that would allow for the listing and trading of eight spot ether ETFs. Prior to this approval, the SEC expressed concerns about Ethereum's staking feature and its previous worries with bitcoin for fraud, volatility, and low investor protections in crypto markets. "Staking," which allows ether holders to earn income by locking up their tokens to help validate transactions on the network, is a crucial feature of Ethereum's consensus mechanism. This income-generating feature, which began on the ether platform in 2022, raises questions about how staking rewards should be taxed and reported. This gave the SEC another reason to be reluctant to approve spot ether ETFs, given the lack of regulatory clarity about their tax status. Note that the SEC's approval of a rule change for spot ether ETFs does not mean that these ETFs can start trading. Applications from the investment managers need to be reviewed and further approvals need to be given. Advantages of Crypto ETFs Cryptocurrency ETFs are a developing asset class, and given the
Add Comment