Franklin

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Bitcoin

<p><strong>Here’s everything you need to know about Bitcoin ETFs starting this Thursday, January 11.</strong></p>
<h2 id="what-is-a-bitcoin-spot-etf">What is a Bitcoin spot ETF?</h2>
<p>A <a href="https://www.cointribune.com/en/bitcoin-the-saga-continues/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin spot ETF</a> (Exchange Traded Fund) is a type of financial product that tracks the current, or “spot,” price of bitcoin.</p>
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<p>Investors purchase ETF shares instead of investing directly in bitcoin. The ETF buys and holds “physical” bitcoin and its shares closely follow the value of bitcoin.</p>
<p>Like stocks, these shares are traded on traditional stock markets, making them accessible to a wide range of investors.</p>
<p>ETFs are regulated financial products that offer a much safer investment environment than exchanges like FTX…</p>
<p>The main advantage of an ETF is that it avoids the technical difficulties associated with buying and holding bitcoins in a personal wallet. Perfect for boomers interested only in its appreciation.</p>
<h2 id="who-are-the-pioneering-investment-funds">Who are the pioneering investment funds?</h2>
<p>The SEC has approved 11 ETFs. Bitwise will have the lowest management fees at 0.2%. Here is the complete list of approved ETFs:</p>
<p>-Bitwise (BITB): 0.2%<br>-ARK 21Shares (ARKB): 0.21%<br>-Fidelity Wise Origin (FBTC): 0.25%<br>-Wisdomtree (BTCW): 0.30%<br>-Invesco Galaxy (BTCO): 0.39%<br>-Valkyrie (BRRR): 0.49%<br>-iShares (IBIT): 0.25%<br>-VanEck (HODL): 0.25% (who also applied for an ethereum etf)<br>-Franklin (EZBC): 0.29%<br>-Hashdesh (DEFI): 0.9%<br>-Grayscale (GBTC): 1.5%</p>
<p>On which exchanges will the ETFs trade?</p>
<p><strong>NYSE:</strong></p>
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<ul>
 <li>Bitwise</li>
 <li>Hashdesh</li>
 <li>Grayscale</li>
</ul>
<p><strong>CBOE:</strong></p>
<ul>
 <li>ARK 21Shares</li>
 <li>Fidelity Wise Origin</li>
 <li>Wisdomtree</li>
 <li>Invesco Galaxy</li>
 <li>VanEck</li>
 <li>Franklin</li>
</ul>
<p><strong>NASDAQ:</strong></p>
<ul>
 <li>Valkyrie</li>
 <li>iShares</li>
</ul>
<h2 id="who-will-hold-the-bitcoins">Who will hold the bitcoins?</h2>
<p>8 out of the 11 providers will use the exchange Coinbase. Coinbase is said to already hold 1 million BTC on behalf of its users, including the 620,000 BTC from the former Grayscale Trust (GBTC).</p>
<p>Fidelity is the only fund that will use its own custody service. Bravo. VanEck will use the exchange Gemini while Hashdesh will use BitGo.</p>
<p>Coinbase:</p>
<ul>
 <li>Bitwise</li>
 <li>ARK 21Shares</li>
 <li>Wisdomtree</li>
 <li>Invesco Galaxy</li>
 <li>Valkyrie Bitcoin</li>
 <li>iShares</li>
 <li>Franklin</li>
 <li>Grayscale</li>
</ul>
<p>Here is the BlackRock commercial for its ETF for Anglophiles:</p>
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     <p lang="en" dir="ltr">JUST IN: BlackRock releases an the first explainer video for their spot <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> ETF <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br>“You might have noticed <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> make it’s way into our every day lives” <br><br> <a href="https://t.co/DaOl056Kmb" rel="noopener noreferrer nofollow">pic.twitter.com/DaOl056Kmb</a></p>— Bitcoin News (@BitcoinNewsCom) <a href="https://twitter.com/BitcoinNewsCom/status/1745454148177547354?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 11, 2024</a>
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<h2 id="h-cash-or-in-kind">“Cash” or “In-kind”?</h2>
<p>In the world of ETFs, the terms “in-kind” and “cash” redemption are used. They refer to the methods by which investors can sell their ETF shares.</p>
<p><strong>-In-kind</strong></p>
<p>In this case, the investor receives the underlying asset. For example, if the ETF holds bitcoins, the investor receives bitcoins as payment.</p>
<p>This method is mainly used by institutional investors. It is advantageous because it avoids selling the underlying asset, which could impact the market and trigger capital gains tax.</p>
<p><strong>-Cash</strong></p>
<p>Here, investors receive an amount equivalent to the value of their shares in cash. This method triggers capital gains tax.</p>
<p>Cash redemptions can be simpler for the average investor who prefers to receive cash rather than a basket of securities.</p>
<p>In the case of Bitcoin spot ETFs, the SEC did not want to authorize the in-kind method.</p>
<p>Let’s conclude with a “Not your key, not your bitcoin”! Bitcoin is not only a store of value but also an uncensorable payment network.</p>
<p>Owning your private keys enables you to lose them in a boating accident. Or to use them in a circular economy anonymously. Or else to stand up against those who plan to use CBDCs to control our lives.</p>
<p>Moreover, there are no management fees when you hold your bitcoins yourself..</p>
<p><strong>Hold your key!</strong></p>

Bitcoin – We tell you everything about ETFs

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