The U.S. Securities and Exchange Commission (SEC) has given the green light to 11 spot Bitcoin exchange-traded funds (ETFs).
Today’s landmark approval includes ETFs from major asset management firms such as BlackRock, Grayscale, and Valkyrie, and is expected to pave the way for substantial investment inflows into the digital asset space.
The SEC’s decision comes after a period of anticipation and speculation within the industry, with more than a dozen firms having filed applications to issue these investment products. This move is seen as a turning point that could lead to wider acceptance and integration of Bitcoin into traditional financial markets.
The approved ETFs, which allow for direct investment in Bitcoin rather than derivatives, are anticipated to attract billions of dollars in the initial weeks of trading.
The SEC’s approval of spot Bitcoin ETFs is expected to provide investors with a more regulated and accessible means of gaining exposure to Bitcoin, potentially leading to increased adoption and stability for the cryptocurrency market.
The SEC’s document, which briefly appeared on their website before leading to a 404 error, stated that the proposals are in line with the Exchange Act and applicable regulations. This comes after a previous ruling that was criticized for being arbitrary in rejecting Grayscale’s bid to convert its Bitcoin trust into an ETF. Grayscale has since confirmed to The Block that it has received the necessary regulatory approvals to uplist its Bitcoin trust to an ETF on the NYSE Arca.
Prior to the SEC’s approval, the ETF applicants were engaged in a competitive race to offer the lowest fees to attract investors. Bitwise, for instance, set its fee at zero for the first six months or until it reaches US$1 billion in assets, and then 0.2% thereafter. BlackRock has offered a discounted fee of 0.2% for the first 12 months or until the fund hits US$5 billion in assets, with a subsequent increase to 0.3%.
The SEC’s approval of spot Bitcoin ETFs is a watershed moment for the cryptocurrency industry, as it opens the door for mainstream investors to participate in the digital asset market through a regulated framework.