The Road to Approval
The SEC approved the 19b-4 applications from various firms, allowing them to list their spot Bitcoin ETFs for trading. However, there was a brief moment where an ‘Error 404’ message appeared on the SEC’s website instead of the approval document.
Statement on the Approval of Spot Bitcoin Exchange-Traded Products
Chair Gery Gensler:
The Commission has approved the listing and trading of spot Bitcoin exchange-traded product (ETP) shares. Since 2018, the Commission has disapproved over 20 exchange rule filings for spot Bitcoin ETPs. One of those filings was from Grayscale, which aimed to convert the Grayscale Bitcoin Trust into an ETP.
Background of the SEC’s Decision
The SEC’s decision to approve spot Bitcoin ETFs is a significant change from their previous denials. Concerns about market manipulation and fraud had led to rejections in the past.
Grayscale’s Legal Overtake and Result
A court ruling in August 2023 in favor of Grayscale reversed the SEC’s refusal to allow the conversion of their Bitcoin Trust into a spot Bitcoin ETF. This ruling set a positive trend for further approvals.
Market Projections and Expectations
Market analysts predict potential inflows into these ETFs, reflecting a generally bullish sentiment in the markets.
Regulatory Hurdles and Fee Structures
The launch of a spot Bitcoin ETF in the U.S. requires the approval of S-1 and 19b-4 forms. Different firms have announced their pricing structures for the ETFs.
Hot Take: America’s First Regulated Spot Bitcoin ETFs Receive SEC Approval
The SEC’s approval of spot Bitcoin ETFs marks a significant milestone for the cryptocurrency industry in the United States. This decision allows investors to gain exposure to Bitcoin’s price without directly acquiring the cryptocurrency. Industry experts are optimistic about the market’s performance and predict potential inflows into these ETFs. However, regulatory hurdles and different fee structures remain factors to consider. Overall, this approval signals a shift in the SEC’s stance towards cryptocurrency and opens doors for further approvals in the future.
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