The US Securities and Exchange Commission (SEC) has officially approved several Bitcoin Exchange-Traded Funds (ETFs) from entities such as ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, and more. This approval represents a significant development in the US and marks the beginning of regulated Bitcoin ETFs. The approval of these applications involves changes to the rules that allow the listing and trading of Bitcoin spot ETFs on exchanges. The brief availability of the deposit on the SEC website caused confusion, but it was eventually corrected. This milestone allows investors to have direct exposure to the price of Bitcoin without owning or self-custodying it.
The approval concludes a long struggle that began in 2013 with the Winklevoss brothers’ request to launch the Winklevoss Bitcoin Trust. The regulatory landscape changed after Grayscale’s success in court in August 2023, which overturned the SEC’s refusal to convert the Grayscale Bitcoin Trust into a Bitcoin ETF.
Industry observers are now awaiting the start of trading for these spot Bitcoin ETFs. Estimates predict significant inflows, with figures reaching $14 billion and $2.4 billion in the first year and first quarter of 2024, respectively.
Following a hacking incident that led to a false announcement about the approval of Bitcoin ETFs, securities lawyers argue that the SEC should initiate an investigation into potential market manipulation. The hack and subsequent market reaction raise concerns about the integrity of the regulatory process.
In conclusion, the SEC’s approval of Bitcoin ETFs is a crucial moment for cryptocurrencies and traditional financial markets. It allows investors direct exposure to Bitcoin’s price without ownership complexities. This historic approval reflects a change in perspective in the regulatory landscape and highlights the growing importance of cryptocurrencies in traditional finance.
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