How might the approval of the "Spot Bitcoin ETF" impact cryptocurrency trading and investments in Thailand?
One of the most anticipated happenings in the cryptocurrency industry is the "Spot Bitcoin ETF," which makes it easier for institutional and individual investors to purchase Bitcoin. The U.S. Securities and Exchange Commission (SEC) recently gave it a green light on January 10, 2024. On its first day of trading, the Spot Bitcoin ETF's trading volume exceeded 157,680,000,000 Thai Baht. You will gain an in-depth knowledge of the Bitcoin ETF from this article..jpg)
Cases from Grayscale and BlackRock that drive towards the creation of a Bitcoin ETF
When digital asset manager Grayscale prevailed in an SEC lawsuit in 2023 over the filing of a Bitcoin ETF, the price of Bitcoin shot up to 5% at that point. The largest asset management company in the world, BlackRock, along with numerous other financial institutions and businesses, attempted to submit the paperwork to the SEC in order to sell clients the Spot Bitcoin ETF. These things have all given rise to fresh hopes for acceptance. Other than the Bitcoin "Future" ETF, no businesses were authorized in the past. There was strong opposition to cryptocurrencies at the time. However, in 2024, the SEC approved the Spot Bitcoin ETF, which gave cryptocurrency supporters some much-needed good news.
What is Spot Bitcoin ETF?
The Spot Bitcoin ETF is a publicly traded investment fund that enables investors to make Bitcoin investments without actually holding digital currencies or BTC. Instead, it is a financial tool that tracks the price of Bitcoin and can yield returns that are almost identical to those of actual coin ownership. Unlike other digital currencies, which can be traded on cryptocurrency exchange platforms, ETFs support conventional property trading.
To put it simply, investing in the Spot Bitcoin ETF means purchasing stock in the fund that contains Bitcoin rather than actually purchasing Bitcoin.
In what ways can Spot Bitcoin ETF make an impact? Why is it getting so much attention?
Spot Bitcoin ETF is a monitored investment tool that makes it easier for traditional investors to access Bitcoin without having to buy and store highly secure digital currencies. Then, it lowers the technological barriers to cryptocurrency investment. Spot Bitcoin ETF involves some costs, such as commissions and management fees, but these are less than those associated with trading Bitcoin directly through conventional crypto platforms.
The introduction of the Spot Bitcoin ETF is an important step forward for digital currencies for a number of reasons, including drawing in a large number of investors and easing institutional investors' fears about investing directly in the market because of regulatory concerns. This may result in the adoption of Bitcoin and other digital assets, increasing their appeal as investments.
Because Spot Bitcoin ETF needs regular SEC approval, it could result in more regulatory clarity and acceptance of digital currencies. This could contribute to elevating the digital currency market's legitimacy and oversight to a new degree.
Plus, the approval of the Spot Bitcoin ETF may suggest that the market for digital currencies has developed to the point where regulated and standardized investment products can be supported. Consequently, it has the potential to boost institutional investors' confidence, encouraging their investment and contributing to greater market stability.
The Bitcoin ETF could be a major driver for a shift in financial technology.
Many believed that the approval of spot Bitcoin ETF was a significant first step toward bringing cryptocurrency into the traditional financial system. The next anticipated one is spot Ethereum ETF. The first deadline for the SEC to approve or reject the verification of a spot Ethereum ETF is coming up in May, and investors are eagerly awaiting it. This is especially true for Larry Fink, CEO of BlackRock, who is keen to see Ethereum ETF become a reality. He recognized that it was a crucial start toward secure tokenization that eliminates all forms of corruption. BlackRock is certain that more blockchain applications be prioritized in order to enhance the current system over time.
List of all SEC-approved Spot Bitcoin ETFs.
The SEC has approved the establishment of the fund for Bitcoin trading for the first time in the history of the Spot Bitcoin ETF, allowing major asset managers to enter the market. The eleven funds are listed as follows:
- Grayscale Bitcoin Trust (GBTC)
- Fidelity Wise Origin
- Bitcoin Trust (FBTC) Bitwise (BITB)
- ARK Invest/21Shares (ARKB)
- iShares Bitcoin Trust (IBIT)
- Invesco Galaxy Bitcoin ETF (BTCO)
- VanEck Bitcoin Trust (HODL)
- Franklin Bitcoin ETF (EZBC)
- WisdomTree Bitcoin Trust (BTCW)
- Valkyrie Bitcoin Fund (BRRR)
- Hashdex Bitcoin Futures ETF (DEFI)
Conclusions and remarks regarding how the SEC's approval of the Spot Bitcoin ETF impacts investments in Thailand and the cryptocurrency industry
The SEC's approval of the Spot Bitcoin ETF is a crucial tool that makes it more convenient for institutional and retail investors to access Bitcoin because the ETF is a financial instrument that tracks the price of Bitcoin directly. In the long run, this may be very beneficial for the trust, acceptability, and stability of the digital asset market, but it does not influence Bitcoin's price as quickly as many had hoped.
Additionally, only a few countries allow the registration of Bitcoin ETFs due to the differences in each country's supervisory authority's operational procedures. Retail investors in Thailand are still not permitted to trade (investors must possess assets exceeding 50 million Thai Baht), most likely due to concerns about market control and investor security.
Retail investors in Thailand are still able to make investments through SEC-regulated foreign medium platforms, however. The Monetary Authority of Singapore (MAS), for example, permits investors to purchase the Spot Bitcoin ETF through a channel that has been approved by MAS even though it is not permitted in the nation. It is advised that investors should exercise extreme caution when making investments in foreign markets.
Therefore, it is necessary for investors to monitor the market, conduct extensive research before making any decisions regarding their investments, and develop risk management skills.
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