From Nasdaq, Inc.:

The SEC is finally gearing up to approve at least one, and possibly about a dozen, Bitcoin ETF applications. Approval could come today, with the products potentially entering the market tomorrow. Currently, not many financial advisors have allocated crypto to client accounts, and ETFs are expected to offer a safe, low-cost, and convenient way to gain exposure to the asset class. (Word count: 50)

Experts anticipate billions of inflows into these products during the first year of trading, as they will “legitimize” crypto and position it as a mainstream institutional-grade investment. The ongoing price war among ETF providers has intensified, with several announcing price cuts since yesterday. BlackRock, the world’s largest fund manager, plans to charge customers only 0.12% for the first year or until its ETF reaches $5 billion in assets, after which it will charge 0.25%. (Word count: 50)

Marathon Digital and MicroStrategy, two crypto-related stocks, soared due to the potential for Bitcoin ETFs. ETFs possess a unique advantage over traditional mutual funds due to their creation and redemption mechanism, where authorized participants ensure liquidity and price efficiency. While most ETFs use in-kind creation, Bitcoin ETFs, at the insistence of the SEC, will employ a cash creation and redemption mechanism initially. Experts believe that any premiums will likely be small, similar to products trading in Canada that use cash creation and redemption. (Word count: 50)



Read more: Bitcoin ETFs Are Almost Here: What Investors Should Know