May 29, 2024
bitcoin etf approval
Bitcoin News

SEC Grants Approval for U.S.’s First Regulated Spot Bitcoin ETFs

In a historic move, the United States Securities and Exchange Commission (SEC) has officially granted approval for several spot Bitcoin exchange-traded funds (ETFs), marking a significant milestone in the cryptocurrency investment landscape. The approval follows a dramatic false start on January 9, when an erroneous tweet from the SEC’s official X account momentarily sent shockwaves through the markets.

On January 10, the SEC approved the 19b-4 applications from prominent entities, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This approval signifies the green light for these companies to list and trade spot Bitcoin ETFs on their respective exchanges.

This groundbreaking development allows investors in the United States to gain exposure to the price of Bitcoin through regulated ETFs without the need for direct ownership or concerns about self-custody. The SEC’s decision represents a significant departure from its historical stance of consistently denying spot Bitcoin ETF requests over the past decade due to concerns related to market manipulation and fraud.

The ‘Error 404’ message that briefly appeared on the SEC website, indicating the approval of 11 spot Bitcoin ETF filings, left market participants questioning whether it was a deliberate pullback by the commission or a result of site traffic overload. ETF analyst James Seyffart suggested on X (formerly Twitter) that the document might have been released prematurely, but a reposting was likely.

With the regulatory green light now in place, industry experts are closely monitoring when these ETFs will commence trading. Alex Thorn, head of digital at Galaxy Research, anticipates spot Bitcoin ETF inflows to potentially reach $14 billion in the first year, while VanEck estimates around $2.4 billion flowing into spot Bitcoin products in the first quarter of 2024.

Image: rawpixel

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