Previously, the news that the US Securities and Exchange Commission (SEC) approved a Bitcoin Futures ETF was one of the hot news of the market. At the time of their initial launch, Bitcoin ETFs received great attention from the market with the advantages they bring.

1. What is Bitcoin ETF?

Bitcoin ETF is roughly understood as a group of assets related to the price of BTC that are bought and held by funds and stock brokerage companies and then converted into Bitcoin ETF at market price allowing investors to buy and sell on the exchange. traditional securities without having to learn how to use cryptocurrency wallets or open accounts at crypto exchanges.

Important schedule of Bitcoin ETF Spot

While the US has yet to approve any spot Bitcoin ETF, it does exist in other regions. The growing popularity of the cryptocurrency industry has allowed institutions to issue Bitcoin ETFs in other countries. Notable examples include:

  • Canada: 3IQ Coinshares, Purpose Bitcoin and CI Galaxy Bitcoin

  • Châu Âu: 21Shares Bitcoin ETP, BTCetc - ETC Group Physical Bitcoin, VanEck Bitcoin ETN, Iconic Funds Physical Bitcoin ETP và Bitpanda Bitcoin ETC

  • Brazil: QR Capital Jersey's Bitcoin ETF: WisdomTree Bitcoin

2. Overview of Bitcoin ETF in the United States

Although ETFs exist in many different markets, when talking about them, many people are often interested in ETFs in the US market. Gaining SEC approval has been a major challenge for those looking to issue a Bitcoin ETF, with dozens of applications and proposals rejected over the past few years.

In June 2022, Grayscale Investments submitted a proposal to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF but was flatly rejected by the SEC. Around that time, the SEC also rejected Bitwise's application for another Bitcoin ETF spot.

However, there are still applications from some organizations approved by the SEC. Typically, in October 2021, the SEC approved the application for ProShares' first Bitcoin futures ETF named ProShares Bitcoin Strategy ETF (BITO). In less than 12 hours after listing on the New York Stock Exchange, BITO achieved more than $1 billion in trading volume. Around the same time, Valkyrie's Bitcoin ETF was also approved by the SEC and traded on the Nasdaq stock exchange.

In general, the SEC only approves Bitcoin ETF futures applications and refuses to approve spot Bitcoin ETFs because of the high volatility, unregulated and easily manipulated nature of BTC. This suggests that US investors will not have access to the Bitcoin ETF spot in the near future.

3. Why is the market FOMO ahead of Bitcoin ETF news?

If the Bitcoin ETF spot is approved, it will be the door to bring a large amount of money from the traditional market into the crypto market, so it can be seen that the market is so FOMO about the news that the Bitcoin ETF is approved.

The deadline for approval of Bitcoin ETF spot will take place in January 2024 and March 2024. This period is also close to the time of Bitcoin Halving, so I think the fomo wave will be big.

  • One advantage of Bitcoin ETFs is that investors can short them if they believe that the price of BTC will decrease in the future, something that is not possible in traditional trading.

  • Another advantage is that Bitcoin ETF helps investors save time researching the market.

The Bitcoin ETF is one of the major steps forward in bringing cryptocurrencies to traditional investors as well as promoting crypto legalization around the world. Some main narratives for you to build a medium-term investment portfolio for the next wave are: SocialFi, AI, RWA, DePIN and BTC ETF.