From Nasdaq MarketSite:

The Securities and Exchange Commission (SEC) has approved spot Bitcoin exchange traded funds (ETFs) after years of anticipation. Major financial institutions like BlackRock, Grayscale and Fidelity have applied to offer these ETFs, and some started trading as early as January 10. Bitcoin, up 170% in the past year, was up around 4% the next day, reaching $47,170.

Expertonomists called the SEC’s decision a “momentous day for the crypto industry.” For over a decade, Bitcoin has been misunderstood and discriminated against. Christina Alexander, chief analytics officer for Pioneer Development Group, calls the decision a step toward full legitimization of cryptocurrency in the U.S. economy.

The newly approved spot Bitcoin ETFs will make Bitcoin more accessible to traditional investors, including 401(k)s and pensions funds. Initial fees for these new ETFs are significantly lower, and many of the funds are offering introductory fee waivers for the first six months. As a result, the competition among funds has intensified, with prices being pushed lower and lower.

One major drawback of investing in spot ETFs is that investors cannot withdraw their Bitcoin holdings. David Waugh, lead analyst for Coinbits, recommends purchasing Bitcoin directly from an exchange or platform to avoid necessary fees for selling Bitcoin through a spot ETF. Multiple experts agreed that holding Bitcoin itself is the best investment strategy.



Read more: Bitcoin ETFs Approved by SEC (for Real) Following Premature Announcement via Hack — What It Means for Investors