BREAKING: SEC Approves 11 Spot Bitcoin ETFs

January 10, 2024 8:15 pm Comments

On Wednesday, the U.S. Securities and Exchange Commission granted approval for several investment firms to introduce “spot bitcoin” exchange-traded funds (ETFs).

This long-anticipated decision is expected to broaden access to Bitcoin investments for big-time investors.

In a statement on the SEC’s website, SEC Chair Gary Gensler stated “While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin.”

He continued “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

Coin Desk had more details to add:

The U.S.’s first spot bitcoin ETFs (exchange-traded funds) are cleared to launch, after federal regulators gave a green light for Americans to invest in financial vehicles tracking in the 15-year-old cryptocurrency.The Securities and Exchange Commission on Wednesday declared effective the 19b-4 filings submitted by the New York Stock Exchange, Nasdaq and Cboe Global Markets, giving these markets permission to list and offer trading in the securities as soon as Thursday.

About a dozen companies, including BlackRock, Fidelity and Grayscale, sought to create bitcoin (BTC) ETFs. In recent days they’ve announced – and, in some cases, slashed – the fees they plan to charge investors, suggesting a fierce battle to collect investors’ money is ahead.

These are spot ETFs, meaning they hold bitcoin itself, versus the already-approved bitcoin futures ETFs, which hold derivatives contracts tied to BTC.

Per NBC News:

The U.S. Securities and Exchange Commission on Wednesday approved rule changes to allow the creation of bitcoin exchange-traded funds in the U.S., a long-awaited move that will give regular investors access to the controversial and volatile cryptocurrency.

The decision will likely lead to the conversion of the Grayscale Bitcoin Trust, which holds about $29 billion of the cryptocurrency, into an ETF, as well as the launch of competing funds from mainstream issuers such as BlackRock’s iShares and Fidelity. The first funds are poised to begin trading Thursday.

The approval may prove to be a landmark event in the adoption of cryptocurrency by mainstream finance, as the ETF structure gives institutions and financial advisors a familiar and regulated way to buy exposure to bitcoin.

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