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Bitcoin ETF approved, SEC nod to 11 firms for spot Bitcoin ETFs

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on Jan 10, 2024
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  • U.S. Securities and Exchange Commission has approved the launch of a spot Bitcoin ETF.
  • This move by the SEC is seen as a validation of Bitcoin's growing acceptance.
  • The approval comes a day after the SEC X account was compromised.

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In a landmark decision, the U.S. Securities and Exchange Commission (SEC) on January 10 approved the launch of a spot Bitcoin ETF, marking a significant milestone for the cryptocurrency industry.

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11 firms approved

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The list of approved firms includes ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.

This approval signifies a pivotal change in the rules, allowing these spot Bitcoin ETFs to be listed and traded on their respective exchanges.

Error 404 panic

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The filing, which confirmed the regulator’s approval, was briefly available for download on the SEC’s website. However, it was only accessible for several minutes before it disappeared, leading to an ‘Error 404’ message.

This temporary availability of the document added a layer of intrigue to the already significant news, fueling discussions and speculations among investors and industry observers.

This long-awaited move offers both retail and institutional investors in the United States a new avenue to gain exposure to Bitcoin’s price through a regulated financial product.

Major crypto asset manager Grayscale’s spokesperson said:

I am happy to confirm that the Grayscale team has received necessary regulatory approvals to uplist GBTC to NYSE Arca, and we will share a press release with additional information shortly.

Day after SEC X account hack

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The approval comes after a tense period of uncertainty that peaked on Tuesday when the SEC’s official X account (previously known as Twitter) was reportedly hacked. The compromised account prematurely announced the approval of all pending applications for spot Bitcoin ETFs.

This false information, accompanied by a manipulated graphic, caused a brief but intense flurry of confusion within the crypto community.

However, the drama surrounding the false announcement did not overshadow the genuine approval that followed. On Wednesday, the Cboe BZX Exchange began preparing to list and trade shares of these newly approved spot Bitcoin ETFs, indicating that the official green light from the SEC might be imminent.

Big validation for crypto

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The approval of a spot Bitcoin ETF is a significant development for the crypto industry.

Unlike previous Bitcoin ETFs, which were based on futures contracts, a spot ETF is directly tied to the current price of Bitcoin, offering a more direct and potentially less volatile investment option.

This move by the SEC is seen as a validation of Bitcoin’s growing acceptance within the traditional financial sector.

It opens the door for major asset managers and financial firms to include Bitcoin in their diverse portfolios, providing a regulated and potentially more secure investment method for both retail and institutional investors.

The drama surrounding the false announcement on social media highlights the ongoing challenges faced by regulatory bodies in managing information in the digital age. However, it also underscores the high level of interest and anticipation that surrounds major decisions affecting the cryptocurrency market.

The approval of the spot Bitcoin ETF by the SEC is a welcome development for the crypto industry, offering a new level of legitimacy and accessibility for investors looking to tap into the potential of this decentralized digital asset.

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