Bitcoin ETFs, the new kings of Wall Street: Is it the right time to invest?

Even toay, Bitcoin remains the most popular and most valued cryptocurrency in the world. Unfortunately, this digital asset is not accessible to everyone. This is what makes Bitcoin ETFs unique. These index funds replicate the BTC price without the technical constraints. They are currently experiencing historic success on Wall Street, the world’s largest financial market.

₿𝗥𝗘𝗔𝗞𝗜𝗡𝗚: #Bitcoin ETFs officially the most popular ETFs in Wall Street history! pic.twitter.com/YvKm3yOtO3

— Documenting ₿itcoin 📄 (@DocumentingBTC) February 9, 2024

Spot Bitcoin ETFs, a revolution for investors

Bitcoin ETFs have been around since 2021. However, they were based on futures contracts and had several disadvantages:

• high fees,
• a risk of liquidation,
• a discrepancy between the contract price and the actual BTC price.

In January 2024, the SEC authorized the launch of Spot Bitcoin ETFs. These are funds that invest directly in bitcoin. They offer investors exposure to bitcoin without having to open an account on a crypto exchange or hold a digital wallet.

Spot Bitcoin ETFs were launched by ten management companies, including the giants BlackRock and Fidelity. They go by names such as BITO, IBIT, or FBTC. They are listed on the NYSE Arca, Nasdaq, or Cboe BZX.

The New Kings of Wall Street?

Bitcoin ETFs had a tremendous start on Wall Street. According to data, they attracted over $6.5 billion in assets under management in one month.

BlackRock’s Bitcoin ETF, IBIT, has established itself as the most popular ETF, with nearly $3.5 billion collected. Fidelity’s ETF, FBTC, is close behind with $2.8 billion.

Bitcoin ETFs benefited from investors’ enthusiasm for bitcoin, which has seen its price soar since the beginning of the year. On February 8th, it exceeded the $45,000 mark.

Bitcoin ETFs have not only revolutionized the ETF market at Wall Street. They have also contributed to the democratization and legitimization of bitcoin as an asset class.