What is a spot bitcoin ETF, and how will its approval by the SEC impact investors?
CBSJan 11
US Govt Approves Bitcoin Exchange-Traded Funds
The Facts
Bitcoin began trading exchange-traded funds (ETFs) on Thursday, one day after the Securities and Exchange Commission (SEC) approved the spot market Bitcoin ETFs.
A total of 11 bitcoin-holding ETFs will be listed on the following three exchanges: NYSE Arca, Nasdaq, and the Cboe BZX Exchange.
The Spin
Pro-establishment narrative
The SEC's decision to approve Bitcoin ETFs opens up the cryptocurrency to millions of investors and further legitimizes the digital asset. While there are still questions about the underlying value of cryptocurrencies, the approval shows that crypto has entered the big leagues of finance. With the backing of the world’s biggest companies, such as Blackrock and Fidelity, Bitcoin is entering the mainstream, and can now be viewed as more than just an outsider's investment.
Establishment-critical narrative
While some wealthy Bitcoin investors may be happy about the SEC's approval of Bitcoin ETFs, true crypto supporters know that this move will only lead to regulation and restriction of the financial medium by the very powers it was created to defy. Bitcoin and other examples of decentralized finance were created to avoid the oppressive thumb of big banks and Beltway regulators. At first, the powers that be tried to suppress and destroy crypto. After they failed to do so, they proceeded to infiltrate the industry and turn it into a mainstream commodity. Bitcoin ETFs traded on mainstream exchanges may be a win for some, but they go against the spirit of cryptocurrency altogether.
Cynical narrative
Although Bitcoin ETFs have been approved, it's clear that the SEC still does not trust cryptocurrencies. Often the victim of fraud, hacking, and theft, those who do place their money into crypto should remain vigilant for the many bad actors that continue to take advantage of the vulnerability and volatility of investments.
Nerd narrative
There is a 50% chance that 5 or more countries will recognize Bitcoin as legal tender by 2030, according to the Metaculus prediction community.