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Spot Bitcoin ETFs: A Milestone for Mainstream Adoption

11 January 2024

The first Bitcoin Spot ETF application was filed in 2013 by Cameron and Tyler Winklevoss, founders of the cryptocurrency exchange Gemini. The more than a decade-long wait had a tumultuous ending, which included a hacked SEC account posting a fake approval announcement on the 9th of January 2024 on the official SEC Twitter account.

Just one day later, and as anticipated by many, all 11 Spot Bitcoin ETFs were officially approved by the U.S. Securities and Exchange Commission on January 10, 2024.

Here is the complete list of approved Spot ETFs for Bitcoin:

  1. ARK 21shares Bitcoin ETF (ARKB) 

  2. Fidelity Wise Origin Bitcoin Fund (FBTC)

  3. Franklin Bitcoin ETF (EZBC)

  4. Invesco Galaxy Bitcoin ETF (BTCO) 

  5. Vaneck Bitcoin Trust (HODL)

  6. Wisdomtree Bitcoin Fund (BTCW) 

  7. Bitwise Bitcoin Trust (BITB)

  8. Ishares Bitcoin Trust (IBIT)

  9. Valkyrie Bitcoin Fund (BRRR) 

  10. Hashdex Bitcoin ETF (DEFI)

  11. Grayscale Bitcoin Trust (GBTC)

The approval of Spot Exchange-Traded Funds (ETFs) for Bitcoin marks a significant milestone in mainstream adoption and acknowledgment of Bitcoin.

Spot Bitcoin ETFs offer companies and institutions a streamlined and regulated avenue to invest in Bitcoin, providing exposure without the complexities of direct ownership. They offer liquidity, ease of integration into traditional portfolios, and regulatory compliance, making them an attractive and efficient investment option.

Why Holding Real Bitcoin in Self-Custody Prevails as a Much Better Option for Individuals.

  1. Control and Ownership: With self-custody, individuals have complete control and ownership of their Bitcoin. They hold the private keys and are not dependent on any third party for access to their funds.

  2. Transferability: Transferability is a crucial advantage of holding Bitcoin directly over investing in a Bitcoin ETF. Bitcoin’s ownership control allows users to send and receive their assets globally and seamlessly with anyone. This direct transferability aligns with the borderless nature of Bitcoin.

  3. Security: Individuals can implement their own security measures, such as hardware wallets and cold storage, reducing the risk of hacking or unauthorized access compared to holding Bitcoin on an exchange or through an ETF.

  4. Privacy: Self-custody allows for greater privacy as individuals do not need to disclose personal information to a third-party intermediary. This aligns with the ethos of decentralization and privacy that is associated with Bitcoin.

  5. No Counterparty Risk: When holding Bitcoin directly, there's no counterparty risk associated with a third-party intermediary going bankrupt or facing financial issues. The individual is not relying on the financial stability of a company or institution.

  6. Avoidance of Fees: Holding Bitcoin in self-custody can help individuals avoid certain fees associated with ETFs or other financial instruments. This is particularly relevant for long-term investors.

While Bitcoin Spot ETFs offer companies and institutions a regulated framework, providing flexibility and ease of integration into traditional portfolios, self-custody of real Bitcoin empowers individuals with unparalleled control and security over their digital assets.

The advantages of ownership, privacy, and independence position self-custody as a compelling choice. With the Bitwala App you can send, receive, buy, sell and self custody your Bitcoins using our Vaults. Remember to always store your keys safely. Additionally, you can use our Crypto-Powered Debit Card to make purchases using your Bitcoin and Ether funds.

As the financial world embraces digital currencies, individuals stand at the forefront of this transformative journey that redefines our relationship with money.