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Bitcoin ETF Saga: Debunking Myths and Revealing the Truth

Bitcoin ETF Saga: Debunking Myths and Revealing the Truth

Fact: The US Securities and Exchange Commission (SEC) Will Not Appeal the Grayscale (GBTC) ETF Ruling

A Bitcoin Trust is a financial vehicle where investors pool their funds to buy and hold Bitcoin. Bitcoin Trusts operate like a traditional investment and are traded on the over-the-counter (OTC) stock exchange. On the other hand, a Bitcoin ETF (Exchange-Traded Fund) is a fund that tracks the price of Bitcoin and is traded on stock exchanges, just like a stock. ETF investors buy shares of the fund, which owns Bitcoin directly. Bitcoin ETFs offer more liquidity and flexibility compared to Bitcoin Trusts.

Grayscale, the world’s largest Bitcoin Trust, has been seeking to convert to an ETF for the past two years. However, the SEC will not appeal an August court loss over Grayscale’s ETF conversion application. While Grayscale remains operationally ready to convert GBTC to an ETF upon SEC approval, the timeline remains uncertain.

Fiction: The SEC Approved Blackrock’s (BLK) Bitcoin ETF

A recent false tweet by CoinTelegraph claiming the approval of Blackrock’s Ishares spot Bitcoin ETF led to a temporary surge in Bitcoin prices. However, the tweet was later retracted as a hoax. Blackrock, the world’s largest asset manager, confirmed that the Bitcoin ETF application is still under review by the SEC.

Fact: Blackrock’s ETF Approval is a Matter of “When”, Not “If”

Despite the false news, the likelihood of Blackrock’s ETF approval is high. Blackrock has a strong track record of ETF approvals, suggesting a positive outcome. The demand for a Bitcoin ETF was evident as Bitcoin prices rose, with Grayscale’s GBTC outperforming Bitcoin itself.

Furthermore, if ETFs are approved in the coming months, companies like Coinbase (COIN), MicroStrategy (MSTR), and Riot Platforms (RIOT) are poised to benefit. Coinbase, as the custodian exchange for many Bitcoin ETFs, would see increased business. MicroStrategy, with its substantial Bitcoin holdings, stands to gain. Riot Platforms, a Bitcoin miner, would also benefit from further adoption.

Bottom Line

The market’s interest in a Bitcoin ETF is undeniable. The potential approval of a Bitcoin ETF would have a significantly bullish impact. However, it is crucial to separate fact from fiction when interpreting headlines.

Note: This article reflects the views and opinions of the author and does not necessarily reflect those of Nasdaq, Inc.