The anticipation surrounding the approval of a US-regulated spot Bitcoin ETF is mounting, considering its potential to significantly catalyze the adoption of Bitcoin and its recognition as a viable asset class. As of September 30, 2023, Bitcoin investment products, including Exchange Traded Products (ETPs) and closed-end funds, held about 842k BTC, equivalent to approximately $21.7 billion, according to Charles Yu, a Research Associate at Galaxy.
Prevailing Challenges in Bitcoin Investment
Current Bitcoin investment avenues present a slew of drawbacks for investors, encompassing high fees, low liquidity, and tracking errors. These inefficiencies, coupled with the administrative burden associated with direct Bitcoin ownership such as wallet/private key management and tax reporting, hamper a broader population of investors from engaging in the Bitcoin market.
Spot ETF: A Gateway for Broader Accessibility
A spot ETF is emerging as a…
