By Susie Violet Ward · Forbes · 8 January 2024
A spot bitcoin ETF holds bitcoin as its main asset, unlike futures ETFs, which rely on bitcoin futures contracts, giving investors exposure to the price through a fund traded on stock exchanges. In early January 2024, with applications from BlackRock and Fidelity pending, Nate Geraci of The ETF Store suggested that the US Securities and Exchange Commission might soon approve such funds.
The article expected approval to increase demand while bitcoin’s supply is capped at 21 million and many long-term holders do not sell, potentially creating a supply squeeze. Forecasts at the time ranged from $42,000 to $100,000 after approval, with Samson Mow of JAN3 suggesting $160,000 or even $1 million and Anthony Scaramucci $330,000. The article also cautions that ETF investors rely on third-party custody, recalling the principle “Not your keys, not your coins.”