In the meantime, we can say that it is a recurring phenomenon, big names within the financial world trying to bring a mock Bitcoin ETF to the market. This time it’s about 21Shares and Cathie Wood’s Ark Invest, who join hands together to try and make a mock Bitcoin ETF a reality. Not surprisingly, this attempt comes after Bitcoin 2023 has started well and even touched the $ 30,000 price again.
What is a Spot Bitcoin ETF?
A spot Bitcoin ETF is a financial instrument that tracks the price of Bitcoin and is tradable on an exchange. Such a fund essentially holds Bitcoin as an underlying asset and allows investors to invest indirectly in Bitcoin, without actually having to buy and store it.
The approval of a spot Bitcoin ETF in the United States can have quite a positive effect on the price for several reasons. First, it can increase the accessibility and acceptance of Bitcoin as an investment, encouraging more institutional investors and retail investors to invest.
It is possible that the market is interpreting the acceptance of a spot Bitcoin ETF as a final judgment by the United States on the digital currency. If there is a spot Bitcoin ETF, it is unlikely that a blanket ban on Bitcoin will ever come out of the hat in the future.
It is particularly interesting for the price, because many analysts expect that this will attract a wave of new capital to Bitcoin. Some insiders claim that this is also the reason that the US authorities are still a bit hesitant, because they are afraid of Bitcoin’s potential growth.
Success now?
It is not the first time that 21Shares and Ark Invest have teamed up in an attempt to launch a spot Bitcoin ETF. Two previous attempts turned down by the US Securities and Exchange Commission (SEC).
Especially given the way the SEC is currently acting against the industry, it seems unlikely that they will approve a spot Bitcoin ETF this time around. But no shot is always wrong, or so they will think at 21Shares and Ark Invest.
21Shares and Ark Invest have been working together since 2021 – the year of the bull run that took Bitcoin to a price of $ 69,000 – to bring a spot Bitcoin ETF to the market. So far, like the rest of the market, without success.
Will they succeed this time?