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SEC approves 11 Bitcoin spot ETFs to begin trading after 10-year wait?

Jan. 10, 2024

After over a decade of attempts, the SEC has finally given the green light for spot Bitcoin ETFs to begin trading in the US. The regulatory approval marks a major milestone that opens the floodgates to greater mainstream adoption of cryptocurrencies. In simple terms, investors can now gain exposure to Bitcoin’s price movements through SEC-regulated investment vehicles offered by major financial institutions.

With a Bitcoin spot ETF having now received approval in the US, Ether prices rallied to over $2,600, jumping 8.5% in the last 24 hours, as traders increasingly bet on the likelihood of a similar Ethereum ETF also getting the green light from regulators. Asset manager BlackRock previously filed for an Ethereum Trust ETF, and sentiment builds that a spot Ether product is viable after the Bitcoin ETF barrier has been broken.

The SEC’s official Twitter account was hacked on Tuesday to falsely announce the approval of spot Bitcoin ETFs, sparking a brief price spike and then a decline for bitcoin. The SEC and Twitter are still investigating how someone obtained access to an SEC-associated phone number to perpetrate the hack, which raises concerns about government cybersecurity policies.

Today’s Newsletter

SEC approves 11 Bitcoin spot ETFs to begin trading after 10-year wait
Ether jumps over $2.4K as traders bet on possible Ether ETF next
X reveals SEC account breach stemmed from unprotected phone number

Markets

Ticker

24hr

Bitcoin

1.9%

8.8%

Ethereum

17.1%

L1s

3.6%

9.5%

L2s

16.8%

13.5%

DeFi

8.4%

Fear & Greed Index

Extreme Greed (76)

Greed (68)

Data powered by CoinGecko.

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Top Stories

BITCOIN

SEC approves 11 Bitcoin spot ETFs to begin trading after 10-year wait

In a landmark decision, the SEC approved proposals for 11 spot Bitcoin ETFs on Wednesday, clearing the way for trading to likely start on Thursday. Leading issuers like BlackRock, Ark Invest, Grayscale, VanEck, and Fidelity are among those receiving the go-ahead to launch Bitcoin ETFs. The ETFs will hold actual Bitcoin, allowing institutional funds to add crypto exposure without custodying coins directly.

The SEC’s change of heart follows years of rejecting Bitcoin ETF applications over concerns about sufficient market protection against manipulation. Canada approved Bitcoin ETFs back in 2021. The US decision brings optimism that Ethereum ETFs could be next in line now that the floodgates are open for further mainstream crypto adoption. Crypto enthusiasts see this regulatory approval as validation of digital assets going mainstream. [cryptobriefing]

BITCOIN

Ether jumps over $2.4K as traders bet on possible Ether ETF next

While an Ethereum ETF still awaits any official proposal or decision, the crypto community sees traders strategically positioning themselves in anticipation of a potential product launch. Tokens like Lido’s LDO and RocketPool’s RPL, which facilitate Ethereum staking, have posted double-digit gains on the growing ETF buzz. Additionally, layer 2 solutions built on Ethereum like Optimism have seen their governance tokens rally sharply in recent days as hopes increase for growing Ethereum activity and adoption.

Unlike Bitcoin which now has an approved US spot ETF, Ethereum has lacked a similar mainstream investment product until now. An approved Ethereum ETF would open the doors for mainstream professional investors to gain easy exposure to Ether without directly owning the asset. However, surging interest this year around web3 and the expansion of Ethereum-based DeFi and NFT applications seems to be setting the ideal stage for a possible Ethereum ETF to finally emerge. [coindesk]

BITCOIN

X reveals SEC account breach stemmed from unprotected phone number

Some prankster managed to hack into the SEC’s Twitter on Tuesday and make a bogus post about approving Bitcoin exchange-traded funds. Even though SEC Chairman Gary Gensler quickly clarified it was false, bitcoin prices swung on the phony news. Now Congress and the public want answers about how this happened and what it means for potential Bitcoin ETF decisions.

At the time of the hack, the SEC was still considering whether to allow Bitcoin ETFs to be traded on public stock exchanges. Crypto advocates have waited years for these kinds of mainstream investment vehicles they believe will greatly expand public participation and prices. That’s why the false tweet had such influence before being discovered as a fraud. The event also underscored concerns about cybersecurity risks even for powerful government agencies like the SEC tasked with stabilizing markets. [theblock]