Boardroom’s resident tech reporter, Michelai Graham, breaks down what a spot Bitcoin ETF is and why it’s the reason Bitcoin is back on the rise.
Bitcoin is back over the $40,000 threshold for the first time in nearly two years, and there’s only one reason why: The spot Bitcoin ETF.
The cryptocurrency‘s price has surged in recent months as investors grow more optimistic about the potential approval of a spot Bitcoin exchange-traded fund. A spot Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. When investors buy shares, they are basically buying a portion of the Bitcoin held by the fund. This is the road that leads Bitcoin straight to the stock market.
The ETF would not only expand bitcoin’s market capitalization but also open Bitcoin up to a whole new pool of investors who typically invest in stocks. It could generate $600 billion in new demand and some crypto analysts even think it could lead to a $1 trillion increase in Bitcoin’s market cap.
The Securities and Exchange Commission has the power to green-light spot Bitcoin ETFs, and some crypto-focused funds are already submitting applications to launch them in the near future.
Check out my video for more on how this is driving Bitcoin’s value up.
SEC approves spot Bitcoin ETFs, Apple Vision Pro gets February launch date, Amazon announces layoffs, & much more in this week’s Tech Talk….
Applications from 11 spot Bitcoin ETFs from asset managers were approved, with trading expected to start as soon as this week….