Even today, Bitcoin remains the most popular and most valuable cryptocurrency in the world. This digital asset is unfortunately not accessible to everyone. Hence the particularity of Bitcoin ETFs. These index funds replicate the price of BTC without technical constraints. They are currently enjoying historic success on Wall Street, the world’s largest financial market.
Spot Bitcoin ETFs, a revolution for investors
Bitcoin ETFs exist since 2021. However, they were based on futures contracts and had several disadvantages:
- high fees,
- a risk of liquidation,
- a gap between the contract price and the actual price of BTC.
In January 2024, the SEC authorized the launch spot Bitcoin ETFs. These are funds that invest directly in bitcoin. They offer investors exposure to bitcoin without having to open an account on a crypto exchange or hold a digital wallet.
Bitcoin spot ETFs have been launched by ten management companies, including giants BlackRock and Fidelity. They have names like BITO, IBIT or FBTC. They are listed on the NYSE Arca, Nasdaq or Cboe BZX.
The new kings of Wall Street?
Bitcoin ETFs have had a meteoric start on Wall Street. According to the datathey attracted more than $6.5 billion in assets under management in one month.
BlackRock’s Bitcoin ETF, IBIT, emerges as theMost popular ETF, with nearly $3.5 billion collected. That of Fidelity, FBTC, is close behind with 2.8 billion dollars.
Bitcoin ETFs have benefited from investors’ enthusiasm for bitcoin, which has seen its price soar since the start of the year. On February 8, it surpassed the $45,000 mark.
Bitcoin ETFs have not only revolutionized the ETF market on Wall Street. They also contributed to the democratization and legitimization of bitcoin as an asset class.
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