Why a Spot Bitcoin ETF Is a Big Deal

[Inside Wall Street with Nomi Prins]( Why a Spot Bitcoin ETF Is a Big Deal By Nomi Prins, Editor, Inside Wall Street with Nomi Prins If you’ve been following the Bitcoin ETF story lately, you’ve maybe seen headlines like these… Bitcoin ETF Approval Odds Just Got Better: Bloomberg Analysts They now see a 65% chance a U.S. spot bitcoin ETF will launch this year, up from 50% previously. Regular readers will know what this is all about… In June, BlackRock filed an application for a Bitcoin ETF. It sent shockwaves through the crypto market (catch up [here]( and [here](. But then, the Securities and Exchange Commission (SEC) kind of said, “Not so fast.” It claimed that BlackRock’s application was “lacking.” So, BlackRock went back to the drawing board. And the company submitted a revised application to address the SEC’s concerns. So far, it seems to be working out… On July 15, news broke that the SEC added BlackRock’s application to its official docket. That tells me that the SEC is probably going to give the application a serious look. I wouldn’t be surprised if it’s a matter of when, not if, BlackRock’s application goes through. Recommended Link [Sell YOUR Stocks… Keep Only ONE (ticker revealed)]( [image]( Jeff Clark predicted the crashes of 2008, 2020, & 2022 – helping his readers dodge huge losses. He then helped double his readers’ money 13 TIMES in the last year alone… But after watching his OWN 23-year-old son lose -60% in risky crypto & tech stocks… Jeff is finally coming forward with his biggest WARNING yet. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. So, he is rolling the camera to help him win back all his losses – and then some – [with just ONE ticker.]( -- I mean, we are talking about BlackRock here. The company manages $9.1 trillion and has its fingers in every region, industry, and type of asset out there. It pretty much owns the world. But here’s the cherry on top… BlackRock’s not the only one pushing for a Bitcoin ETF. So are other major players – like Fidelity and Invesco. They’re also applying for their own spot Bitcoin ETFs, alongside BlackRock. And that’s a big deal. Why? Because if one of them is approved, it would be the first spot Bitcoin ETF in the U.S. And it would be tradable on a traditional stock exchange. That means that, for the first time, anyone could buy Bitcoin in a regular brokerage account. Not Bitcoin futures. Not confusing Bitcoin “funds” that trade at an ever-changing premium or discount. And no need for you to sign up for special crypto exchanges, either. You can see why this is one of the most significant stories in the crypto market right now. But you’re probably wondering… What will happen to Bitcoin’s price if the SEC gives the green light for a spot Bitcoin ETF? Recommended Link [The “Amazon Secret Royalty Program” Can Help Anyone Retire Like Royalty]( [image]( A unique type of investment could help you make more money than you will need for the rest of your life. It’s what we call the “Amazon secret royalty program.” It’s an income stream that allows you to collect $1,000s… $10,000s… or more every year! In fact, Business Insider says this type of investment could provide “enough money to live off of each year, without having any other retirement plan...” “Royalties” are the most exciting investments in history. Put simply, they’re periodic payouts… That could deliver all the money you need for your retirement… While these “royalties” are different from traditional royalties, just one could hand you enough income to live life on your own terms. And it only takes a few minutes to set up. [Learn how to collect your first payout before September 10th.]( -- Why a Spot Bitcoin ETF Is a Big Deal Now, there is no crystal ball to tell us how any of this will play out. Anyone who says otherwise is misinformed or just straight up lying to you. But I’m optimistic that, if the first Bitcoin spot ETF in the U.S. gets approved, it will attract a lot of new capital. It could even ignite the next bull run. Before we get into what it could do to Bitcoin’s price, though, let’s talk about what we really mean by a spot Bitcoin ETF. A Bitcoin ETF is just a pool of money that invests into Bitcoin. As I’ve mentioned, Bitcoin ETFs already exist. Two popular products are the Grayscale Bitcoin Trust (GBTC) and the new ProShares Bitcoin Strategy ETF (BITO). But these products are not without problems. GBTC is a trust that holds Bitcoin. But it trades like a closed-end fund and has no redemption mechanism. This means that the market price of GBTC can deviate a lot from the actual value of the Bitcoin it holds. Take 2018, for example. At times, investors were paying as much as a 100% premium to the underlying price of Bitcoin. That’s GBTC’s biggest drawback. A spot Bitcoin ETF is designed to track the Bitcoin price, minimizing the likelihood of premiums or discounts. What about BITO? Well, with BITO, you don’t invest directly in Bitcoin but in Bitcoin futures contracts. The fund buys positions in one-month CME Bitcoin futures contracts. As the contracts near expiration, BITO gradually sells them and buys longer-dated contracts. Recommended Link [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( [image]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( -- Now, the price of the futures contract is likely to closely track the price of spot Bitcoin. That’s the good news. The bad news is that rolling from one futures contract to the next has a cost. These costs accumulate over time, ultimately impacting the value of BITO and, thus, anyone’s investment in BITO. By contrast, a spot Bitcoin ETF allows you to track the price of Bitcoin directly. So, if Bitcoin’s price goes up, so does the ETF and vice versa. A spot Bitcoin ETF would also be available across all brokerages, exchanges, and other trading platforms. No need to sign up for a crypto exchange or open specific brokerage accounts just to trade crypto. Instead, you could add Bitcoin to your portfolio through your existing brokerage account – without dealing with KYC rules or minimum deposits on different platforms. In other words, a spot Bitcoin ETF would offer retail investors a hassle-free way to invest in Bitcoin. And the list of benefits doesn’t stop there: - With a spot ETF, you could buy Bitcoin through your 401(k) or even your IRAs like Roth and traditional IRAs. - It would offer more security. That’s because it would undergo an extremely thorough regulatory approval process. This includes an examination of the ETF’s structure, investment strategy, custodial arrangements, and disclosure practices. - It would also have to keep up with ongoing compliance requirements, such as regular reporting and audits. This strengthens scrutiny and oversight – meaning more protection for investors. - It could be cheaper than Bitcoin alternatives available right now. That’s because additional fees – such as spreads or transaction fees – wouldn’t be incorporated into the trading process. - A Bitcoin ETF would have a transparent fee structure, giving investors more clarity about the costs involved. These are just some of the things that would make a Bitcoin ETF a financial product for the masses. And it wouldn’t only attract more retail investors. It would also make Bitcoin more appealing for institutions and advisors managing clients’ investments. And all it would take for the floodgates to open is the SEC’s approval of a spot Bitcoin ETF. As for what that would mean for Bitcoin’s price? I’ll have more to say on that in our next regular edition. So stay tuned for that on Monday… Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. On September 20, a rare, generation-defining event we have only seen three times in the last century is about to hit the markets… Twenty-one billionaires – like Elon Musk, Ray Dalio, and Warren Buffett – are already positioning themselves for what’s coming. I call it “America’s Secret Stock Panic.” And those who prepare now could have the chance to secure a seven-figure nest egg. Earlier today, I went on camera with all the details. If you missed my new video presentation, you can still catch the replay [right here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG A reader shares why he believes that the Federal Reserve has to raise interest rates… I think that the Fed has no choice but to raise interest rates. We have to “compete” for bond investment money now, and rising rates will be the only way that we can support the dollar against other currencies right now. We are heading to a blowoff top in this last stage of the unprecedented bull market; not unlike 1927, 1928, and 1929. Then, the orchestrated collapse and/or a laborious 5-7-10 year drubbing of a bear market, like from 1966-1982. – Dave R. Then, another reader expresses her doubts about Bitcoin… I don’t like the idea of Bitcoin. I don’t trust this as an escape plan. I want only stocks as I don’t see getting ahead with Bitcoin, only loss. – Jineane L. Do you agree with Dave that the Fed has to raise interest rates to support the dollar? Is Jineane right in thinking stocks are the only reliable way to get ahead in the market? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). 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