Bitcoin ETFs have arrived

Bitcoin ETFs open for trading on stock exchanges, 15 years after Bitcoin first launched - serving as a legitimizing force for blockchain technology and opening up the market to millions of new investors.

Published on
January 12, 2024
Bitcoin ETFs have arrived

Since the launch of Bitcoin 15 years ago, there has been wave after wave of innovation and adoption in Web3. With it has come a multitude of new blockchains, the Ethereum Virtual Machine (EVM), hundreds of thousands of new cryptocurrencies and tokens, and a blossoming NFT market for collectibles and digital art.

And now, adoption from traditional financial institutions. Wednesday’s approval of spot Bitcoin ETFs by the SEC marks a significant milestone for the industry more broadly. Eleven financial institutions have now been cleared to offer Bitcoin ETFs, which launched yesterday on the NYSE, CBOE and NASDAQ.

ETFs will make Bitcoin, and possibly other cryptocurrencies in the future, easily accessible to individuals and funds through brokerages, retirement accounts, and more. The launch of Bitcoin ETFs on major exchanges marks the completion of a 10-year campaign by the industry and the start of an era that brings traditional finance closer to Web3.

Bitcoin ETFs, explained

ETFs are a type of financial product that offers exposure to a commodity like gold, oil, or Bitcoin without the investor needing to physically take custody of it. Since they are covered by investor protection laws, many people see ETFs as a safer alternative to self-custody. In 2022, more than 16 million Americans invested in ETFs. 

Despite demand from fund managers, up until now there hasn’t been an easy way for them to invest in Bitcoin. Since ETFs operate on conventional stock exchanges, they are also accessible to individuals and companies who are otherwise unable or unwilling to buy and hold crypto directly. Now, trillions of dollars in capital managed by institutional investors that previously lacked a path to investing in crypto has been unlocked.

The future is tokenized

Since 2016, the core thesis for 0x has been that all forms of value will be tokenized on public blockchains. Over the next decade, everything that can be tokenized will be - from stocks and bonds to collectibles and video game items.

Blockchains give us an opportunity to leave the geographic lottery behind by establishing an open and globally accessible system that acts as a potent equalizing force for the world.

We’re proud to be a part of this mission, empowering developers and teams with essential Web3 building blocks and contributing to the broader ecosystem since 0x launched in 2017.

Crypto is here to stay and we’re just getting started!