From Nasdaq:

The U.S. Securities and Exchange Commission has approved 11 spot Bitcoin ETFs designed to track the “spot” price of Bitcoin, bringing cryptocurrency more into the mainstream and making it easier for people to invest. Several brokerage accounts are waiving fees for a limited time, sparking a “fierce fee war.” Vanguard account holders are left out, as the platform will not offer the new Bitcoin ETFs. Chief Executive Officer of Valkyrie Leah Wald notes that this marks a significant step toward accessibility for both institutional and retail investors. The new funds are touted to be appealing to both Wall Street and Main Street investors.

What sets these new ETFs apart? Fees, for one. Eight of the 11 spot Bitcoin ETFs are under 0.40%, with six waiving expenses for a limited time or until the fund hits a certain asset level. Trust will also play a role in evaluations; companies such as Blackrock, Fidelity, and Invesco are seen as industry leaders that bring experience in trading cryptocurrency. It’s important to take cybersecurity into consideration as well, as these new funds are leveraged through brokerage accounts. Spot Bitcoin ETFs are also anticipated to attract tax liabilities, mirroring how gold ETFs are taxed as if the investor actually holds gold. It’s expected that they will be taxed depending on the duration an investor holds the fund, with rates ranging from 0% to 20%.

While the approval of 11 spot Bitcoin ETFs may seem like a win for the cryptocurrency, it is important to note that they’re not guaranteed to replace Bitcoin futures ETFs. Bitcoin remains decentralized, presenting a potential challenge in price disparities across the market. Ultimately, they present a new opportunity for both institutional and retail investors to gain exposure to Bitcoin without having to manage and safeguard digital wallets on their own. It is important to remember the potential implications of these new investments, including the tax implications that may follow once spot Bitcoin ETFs are purchased.



Read more: Spot Bitcoin ETF Bonanza! Your Guide to Wall Street’s Hottest New Funds