- The companies’ products will begin trading today, Jan. 11
- Spot Bitcoin ETFs will give all investors exposure to the flagship crypto
- They will not have to invest in it directly
The US Securities and Exchange Commission approved 11 Bitcoin ETF applications, including not only that of Ark Investments/21 Shares, for whom the deadline was yesterday, but also of BlackRock, Fidelity, Invesco and VanEck. The companies’ products will begin trading on Thursday.
Bitcoin's price is just over $46,000 at the time of writing. Other cryptocurrencies have rallied, too.
The ETF applicants recently announced and then reduced the fees they plan to charge. The spot ETFs approved hold Bitcoin itself rather than Bitcoin futures ETFs, which have existed for some time and hold derivatives products tied to the world’s oldest crypto.
Approval comes in the wake of resounding court loss
SEC’s approval comes in the wake of many years of refusals and delays in launching spot bitcoin ETFs. There is a connection between the approval and the resounding loss in court suffered by the SEC a few months ago. A court of appeal ruled the regulator’s decision to reject Grayscale’s efforts to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF was random and unjustified.
According to a statement by Jenn Rosenthal, vice president for communications at Grayscale, the company’s team has received the necessary approvals to uplist GBTC to NYSE Arca.
The regulator is making amends
SEC Chairman Gary Gensler issued a statement, according to which approving the listing and trading of spot Bitcoin exchange-traded products was the “most sustainable path forward.”
Benefits of a spot Bitcoin ETF
Spot Bitcoin ETFs will give institutional and retail clients exposure to the flagship crypto without requiring them to invest in it directly, open crypto wallets, etc. Any US investor who has an account with a broker can trade ETF shares.
A long time in coming
The regulator’s approval was almost certain, even in 2023. E-Trade, Fidelity, and other brokerages started listing tickers for some of the ETFs on their platforms before it had become fact.
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