Recently, BlackRock filed an application for a spot Bitcoin ETF with the SEC. Given that it already successfully applied for 575 ETFs - and had one other application rejected, people are cautiously optimistic that its application would be approved. If so, this would be an unprecedented development since the SEC has never approved a spot BTC ETF before.

Hot on BlackRock’s heels is WisdomTree. As a prominent provider of exchange-traded funds (ETFs), it filed an application, indicating its intention to launch the WisdomTree Bitcoin Trust, to be listed on the Cboe BZX Exchange. So, best case scenario: we get two spot BTC ETFs approved in the near future.

I sense the excitement among BTC enthusiasts. Greater institutional interest in BTC is likely to drive up its price, making it a more valuable speculative asset. However, I’m scratching my head as to why retail investors would invest in BTC ETFs instead of just buying BTC itself. I mean, these ETS they don't track the price of Bitcoin very well yet. So due to this high tracking error, the Bitcoin ETF actually trades at a premium against the underlying securities when the market is facing an upward trend. So why would people want to invest in a spot BTC ETF when buying BTC on Fold/CashApp/Venmo is so convenient? Would you?