The SEC gave the green light for all 11 spot Bitcoin Exchange Traded Funds (ETFs) on Wednesday, January 10, 2024. They include those from ARK Invest (ARKK), BlackRock (BLK), VanEck, WisdomTree, Fidelity, Invesco, Franklin, Hashdex, and Valkyrie. Moreover, Coinbase (NASDAQ: $COIN) is the designated custodian for most approved issuers.
Coinbase, a publicly traded company, is a popular crypto exchange where traders or investors can buy, sell, and trade hundreds of crypto tokens. Additionally, it provides a digital wallet for holding cryptocurrencies and educational material for new traders.
Coinbase CFO Alesia Haas, in an interview with Yahoo Finance, said it was a “landmark day for crypto” but that “this is a long journey and this is just one step along the way” for crypto mass adoption.
Haas added,”Coinbase has a long history of safely storing assets for both our retail and institutional customers.” She also said that Coinbase will be the underlying custodian of all the Bitcoin ETFs approved. As part of the package, Coinbase will offer security, including cybersecurity.
The Coinbase CFO also believes that the spot Bitcoin ETF approval will open the doors for trillions of dollars that were previously unable to access crypto to enter the asset class.
Bitcoin ETFs Management Fees
Every company has a different set of fees for their BTC ETF. The new Bitcoin investment vehicles will have lower fees, and there will be fee exemptions during the first month of trading.
Bitwise will charge a 0.20% management fee for its newly approved BTC ETF. It has the lowest expense ratio among all the newly approved ETFs.
VanEck has set its fee at 0.25%, while 21Shares, under ARK Invest, plans to implement a fee of 0.21% for their Bitcoin ETF, as stated in ARK Invest’s documentation. BlackRock, the world’s largest asset management firm, will apply a 0.25% charge for its Bitcoin ETF.
Coinbase Stock Update: $COIN
$COIN closed trading on Thursday, January 11, 2024, at $141.46, with a discount rate of 6.95%. Its previous close was $151.29. At the time of writing, it has a market cap of $33.707 billion with a trading volume of 25,870,425.
Should you Buy Bitcoin ETFs?
Bitcoin ETFs are currently trading at extremely low fees. As such, they are lucrative long-term investments. Reputable companies like BlackRock, Grayscale, VanEck, ARK, and Bitwise are behind these ETFs. Adding them to your portfolio could pay off.
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