Potential Impact of US SEC’s Approval of Spot Bitcoin ETF on Indian Investors – Forbes Advisor INDIA

Crypto investors in the U.S. are cheering the Securities and Exchange Commission’s (SEC) approval for 11 spot bitcoin exchange-traded funds (ETFs). This is big news for Indian crypto enthusiasts as well given the numbers of crypto investors in the country stood at more than 19 million as of 2023.

Among the Spot Bitcoin (BTC) that got an approval from the U.S. financial regulator include Grayscale Bitcoin Trust, Bitwise Bitcoin ETF, Hashdex Bitcoin ETF, iShares Bitcoin Trust and the Valkyrie Bitcoin Fund. Likewise, ARK 21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Fund, the Fidelity Wise Original Bitcoin Fund and the Franklin Bitcoin ETF.

Industry experts believe that these 11 ETFs are set to bring more stability to the price of BTC in the long-term and potentially reduce liquidity risks over time. Here’s all investors need to know.

How Do Spot Bitcoin ETFs Work?

Spot BTC ETFs work just like any ETFs in India, that tracks indices such as the NIFTY or Sensex or even commodities like gold or silver. But these will be traded on conventional exchanges in the U.S., mirroring the Bitcoin value.

An Indian user investing in Bitcoin ETFs will get exposure via regulated entities without worrying about cryptocurrency storage—this is a remarkable shift that may address worries of storing crypto coins in risky wallets or dubious exchanges.

Would Spot Bitcoin ETFs Impact Indian Government’s Stance?

In India, the cryptocurrency ecosystem is still awaiting robust digital assets regulations, which have been in the works for several years. In Nov. 2021, the government listed the Cryptocurrency and Regulation of Official Digital Currency Bill, but it is yet to be discussed in the Parliament and hasn’t got an official stamp of law.

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How Can Indians Invest in Spot Bitcoin ETFs

Indian investors can directly purchase Spot Bitcoin ETFs via a domestic or an international broker just like they invest in their stocks. New-age stock brokers offer easy access to U.S. stocks and ETFs.

Bottom Line

Cryptocurrency experts believe that it is still future to witness whether spot bitcoin ETF will draw a considerable demand from Indian investors. For now, it looks like a good day for crypto enthusiasts.