Jakarta –
The Securities Exchange Commission (SEC) or the United States (US) Securities and Exchange Commission gave the green light for the presence of the first spot bitcoin ETF traded in the US. The approval of the ETF is a watershed moment for the crypto industry, which initiated it 10 years ago.
This announcement caused Bitcoin prices to weaken. According to Coin Metrics the price of the cryptocurrency ethereum jumped as high as 15.5% to US$ 2,606.00 from the highest level since May 2022. It was last up 14.5% at US$ 2,586.54
“Now that the bitcoin ETF speculation has come to fruition, it looks like traders are turning to ether to get ahead of the next narrative, the ETH ETF, while ETH looks relatively cheap compared to most other tokens,” said Conor Ryder, head of research at Ethena Labs, quoted by CNBC, Thursday ( 11/1/2024).
Even so, throughout 2023 the price of ether will be far behind bitcoin in 2023. The ether cryptocurrency rose just 90% compared to bitcoin’s 157%.
So what is a Bitcoin ETF?
Quoting from CBS News, ETFs are pooled investments, like mutual funds, but traded on stock exchanges like stocks or bonds and track certain indexes, sectors or asset classes such as gold. Unlike traditional mutual funds, mutual funds can be bought and sold throughout the day.
So, if there is a spot bitcoin ETF, it allows investors to get direct exposure to the price of bitcoin. Unlike regular bitcoin ETFs, where bitcoin futures contracts are the underlying asset, bitcoin is the underlying asset of spot bitcoin ETFs.
Each spot bitcoin ETF is managed by a company that issues its own bitcoin holdings purchased through other holders or through authorized cryptocurrency exchanges. The shares are listed on the stock exchange.
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2024-01-11 02:06:51
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