After months of waiting and a hacker attack that took the market by surprise, the Securities and Exchange Commission (SEC) approved this Wednesday (10) a batch of 11 Bitcoin (BTC) cash ETFs (index funds) from the United States . Among these are the products of the managers BlackRock, Ark Invest, Fidelity and the Brazilian Hashdex.
The SEC had until now denied every request to approve Bitcoin ETFs, but everything changed in early 2023, when BlackRock submitted its proposal. Since then, agents have been waiting for approval given the weight and influence of the world’s largest asset manager. The ETFs, a first in the country, could attract up to $100 billion in the first year, Standard Chartered Bank said in a report.
“More than a major regulatory advance in the United States, the launch of the Bitcoin spot ETF represents an achievement for the entire digital asset ecosystem. We are happy to participate in this historic moment and once again we can say that Hashdex is at the forefront globally in the regulated crypto funds market,” said Marcelo Sampaio, CEO of Hashdex.
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“Today is a big day,” Cathie Wood, CEO of Ark Invest, said tonight via X (formerly Twitter). Earlier this week, in an interview with CNBC, you said the regulator’s approval is a green light for institutional investors. Known for her investments in innovation, Cathie Wood is one of the guests of Onde Investir 2024, a free event at InfoMoney which will be held starting next Monday (15th).
Despite the approval, SEC Chairman Gary Gensler said in a statement that while the agency has approved ETFs, it does not “endorse” Bitcoin. “Investors should remain cautious regarding the myriad of risks associated with Bitcoin and products whose value is tied to the cryptocurrency.”
War for a fee
To attract investors, issuers are now fighting a fierce battle over management fees, which in some cases go as low as zero. BlackRock will charge 0.12%. “They really go for the jugular, to crush others [competidores] before they’re even born, just brutal,” the ETF analyst said at BloombergEric Balchunas.
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Anticipation for the release of ETFs was one of the main catalysts for Bitcoin last year. Over the past 12 months, the digital currency has risen by more than 160%. Shortly after the announcement, the digital asset fell to $45,500, according to aggregator CoinMarketCap.
Part of the market believes that, with this green light, Bitcoin could reach $50,000 in January, and renew its all-time high of $69,000 this year. Halving, an event that halves the cryptocurrency inflation rate, also works in the cryptocurrency’s favor. In the very short term, however, analysts are more cautious and are betting on the possibility of making profits as soon as the $50,000 threshold is reached.
“The impact of the SEC approval of the Bitcoin spot ETF goes beyond the immediate new liquidity that will enter the market with the new funds themselves. This certainly has a direct impact, including on the price, but the potential for a larger impact is exponential, due to the changes the ETF can bring in the financial and capital market segments,” said Nicole Dyskant, crypto asset lawyer and consultant at Fireblock.
Hacker attack
The days leading up to the launch were marked by virtual invasions and criticism of the cryptocurrency market. Yesterday the SEC’s Twitter profile published the news of the release of the ETFs, but ten minutes later the regulator denied the information and said that the account had been “compromised”.
In the early hours of this Wednesday, X (formerly Twitter) confirmed that an “unidentified individual” invaded the US Capital Markets Sheriff’s account and posted the inappropriate comment. The SEC also announced that he will cooperate with authorities to conduct an investigation into what happened.
Earlier this week, the president of the federal agency, Gary Gensler, issued a series of warnings about the cryptocurrency market. He stated that “those offering cryptocurrency investments/services may not comply with applicable law” and that investors should understand the risks of the industry before investing.
2024-01-10 21:22:26
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