SEC’s Bitcoin Bonanza
Why is Bitcoin mooning?
The U.S. SEC granted approval to spot Bitcoin ETFs.
Haven’t the SEC already approved Bitcoin ETFs previously?
Yup, In 2021 the SEC granted approval for a futures Bitcoin ETF.
What’s the difference between spot and future Bitcoin ETFs?
A spot Bitcoin ETF involves the prompt execution of a Bitcoin trade promptly, whereas a futures Bitcoin ETF involves the future execution of a Bitcoin trade.
Why is spot Bitcoin ETFs a bigger deal than futures Bitcoin ETFs?
Spot Bitcoin ETFs track the current price of Bitcoin whereas futures Bitcoin ETFs track the future price of Bitcoin.
Still, what’s the big deal about the approval of futures Bitcoin ETFs?
The tracking of the current price of Bitcoin by spot Bitcoin ETFs would enhance the coupling between the crypto and traditional financial investment markets.
Its bonanza in cryptopia as spot Bitcoin ETFs recorded USD4.5 billion in trading volume on the first day of trading. Satoshi Nakamoto would be proud.