Flood gates open after "spot bitcoin" approval?
- Ofilia Uh and Kathy are partnering for a Bitcoin application.
- Some traditional wirehouses and wealth management platforms have been hesitant to allow access to Bitcoin products.
- Spot Bitcoin ETFs may broaden institutional participation.
Spot Bitcoin ETFs vs. Futures
- Spot Bitcoin ETFs are more likely to broaden institutional participation as they are easier to understand and fit within existing infrastructure.
- Futures products have been viewed as more complex and have faced more hesitancy from advisors.
- Spot Bitcoin ETFs are more plain vanilla and remove regulatory uncertainty.
Launch of Bitcoin and Ethereum Futures ETFs
- Uh and Kathy are launching a suite of Bitcoin and Ethereum Futures ETFs.
- Both types of products have different use cases and cater to different users.
- There is a customer base for both Futures and spot products.
Impact of a Bitcoin ETF on Bitcoin
- The anticipation of a Bitcoin ETF has already led to a price increase in Bitcoin.
- Institutions entering the asset class could significantly impact the price.
- Bitcoin's scarcity value and correlation to other asset classes contribute to its appeal.
Comparison to Gold's ETF Launch
- The launch of the gold ETF allowed for greater accessibility and cost-efficiency.
- Bitcoin's ETF structure is seen as a safer way to own it.
- Bitcoin's potential as a new asset class is still up for debate.
Surveillance Sharing Agreements
- Surveillance sharing agreements allow exchanges to share data and detect fraud and manipulation.
- These agreements are important for regulatory oversight in cross-border ETFs.
- Kathy's ETF will charge 25 basis points and offer free access for the first billion dollars or six months.
- Specifics of other ETFs' fee structures have not been disclosed.
- Competitively priced products with good seed capital are expected.
- Some applicants have lined up substantial investors, but specific details have not been disclosed.
- Seed capital is not expected to be an issue for most ETFs.
- Due diligence on the products will determine investor interest.
Approval of Multiple ETFs
- It is expected that all 13 ETF applications will be approved simultaneously.
- The SEC wants to avoid favoring any particular ETF issuer.
- Market share will be distributed among multiple ETF issuers.
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