2024-01-08 23:10:10
© Reuters. Cryptocurrencies: bitcoin and ethereum rise sharply, starting week of possible ETF approval
The and o had strong rises this Monday, 8th, starting a week that could be decisive for the long-awaited approval of exchange-traded funds (ETF) in cash for bitcoin by the United States Securities and Exchange Commission (SEC, in its acronym in English). The movement led the main cryptocurrency to rise almost 7%, reaching US$47,000, a level that had not been quoted since April 2023, but the momentum was lost throughout the session.
The SEC faces a deadline this Wednesday to approve or reject the first candidate: a fund managed by a joint venture between Cathie Wood’s ARK Investment Management and crypto asset manager 21Shares. The agency previously postponed that decision three times. If the SEC changes its tune, it is expected to approve similar requests from other asset managers at the same time to avoid any favoritism.
While ETFs are not yet trading, Monday morning brought a slew of company filings listing their planned fees for the first time. The lowest long-term fee is planned by the Bitwise Bitcoin fund, which will charge 0.24% per year. The ARK 21Shares Bitcoin ETF and VanEck Bitcoin ETF will have an expense ratio of 0.25%, while BlackRock’s (NYSE:) iShares Bitcoin Fund came in at 0.3%. Several providers, including Bitwise, ARK and 21Shares, and Invesco Galaxy said they would waive fees completely for certain periods and for a certain amount of assets under management.
Because many brokerages do not charge commissions, trading bitcoin through ETFs can be effectively free for as long as exemptions last, assuming spreads between bids and offers remain tight. Bitcoin proponents hope the new funds will bring in tens of trillions of dollars from investors who previously didn’t have easy access to the cryptocurrency. This could increase the price of the coin and create interest in trading other tokens.
At 5:10 pm (Brasília time), bitcoin rose 5.85%, to US$46,883.49 (R$228,449.17), according to Coinbase (NASDAQ:). Ethereum, in turn, advanced 4.41%, to US$ 2,351.35 (R$ 11,460.52).
*With information from Dow Jones Newswires.
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