The recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has sent ripples of excitement through the global crypto community.
On the contrary, market participants believe that Bitcoin ETFs may not make sense for retail investors. Such instruments are usually opted by institutions for passive exposure.
Like any investment, Bitcoin ETFs come with their own set of pros and cons. However, one notable advantage is that investors can gain exposure to Bitcoin through regulated entities, alleviating concerns about cryptocurrency storage.
The U.S. securities regulator on Wednesday approved eleven U.S.-listed ETFs, including Valkyrie s, that track the spot price of bitcoin, the world s largest cryptocurrency. They saw a combined $4.6 billion worth of shares trade hands as of Thursday as investors jumped into the landmark products.