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

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The US Securities and Exchange Commission (SEC) has finally approved the launch of 11 spot Bitcoin exchange-traded funds (ETFs) that would hold Bitcoin directly, marking a significant milestone for the crypto community. This decision comes after 10 years of failed applications and is expected to open the floodgates to a wave of institutional investment.

“Order granting accelerated approval” it’s over. Thank God. pic.twitter.com/qCozlxzSBX

— Eric Balchunas (@EricBalchunas) January 10, 2024

The SEC officially approved the launch of spot Bitcoin ETFs from the following issuers: BlackRock, Ark Invest, Grayscale, VanEck, Bitwise, Fidelity, Hashdex, WisdomTree, Invesco Galaxy, Franklin, and Valkyrie.

In 2013, the Winklevoss twins were the first to file with the SEC for an investment fund based upon their substantial holding of Bitcoin. The commission officially approved the applicants’ 19b-4 and S1 filings on Wednesday.

Earlier today, Cboe Global Markets said six spot bitcoin (BTC) exchange-traded funds will be listed and start trading on its stock exchanges on Thursday. Cboe’s website listed six bitcoin ETF applicants approved to start trading tomorrow – Ark 21 (ARKB), Fidelity (FBTC), Franklin Templeton (EZBC), Invesco (BTCO), VanEck (HODL) and WisdomTree (BTCW).

14 ETF issuers submitted applications to launch spot Bitcoin ETFs in recent months, including major financial institutions like BlackRock, Fidelity, Invesco & Galaxy, ARK & 21Shares, VanEck, WisdomTree, Valkyrie, Hashdex, Franklin Templeton, Bitwise, 7RCC, Grayscale, Global X, and Pando.

A spot bitcoin ETF involves actual bitcoin, removing supply from the market, while a bitcoin futures ETF tracks the price of bitcoin through futures contracts.

Institutional investors such as typically conservative pension and insurance funds will now have a way to add exposure to Bitcoin through these SEC-approved vehicles without having to custody BTC themselves. This mainstream adoption is expected to further legitimize cryptocurrencies.

The US becomes the ninth country to approve spot bitcoin ETFs. Other countries with operational spot bitcoin ETFs include Canada, Germany, Brazil, Australia, Jersey, Switzerland, Liechtenstein, and Guernsey.

VanEck anticipates inflows of over $2.4 billion into spot bitcoin ETFs in Q1 2024 should approval be granted at the beginning of the year. Bitwise predicts that within five years, spot bitcoin ETFs in the United States will hold $72 billion in assets under management.

With bitcoin ETFs now approved, market attention shifts to the possibility of an Ethereum ETF, given Ethereum’s standing as the second largest cryptocurrency behind Bitcoin. BlackRock and Fidelity have previously filed for spot ether ETFs. The floodgates are now open for further crypto asset adoption through regulated investment vehicles in the US.

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