On Wednesday local time, the US Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETs for the first time in history, which also became a landmark event for cryptocurrencies.
The SEC posted voting records on the Bitcoin spot ETF listing ruling on its website, showing that Chairman Gensler and two other Republicans voted in favor, while the other two Democrats voted against it.
However, Gensler said that although some Bitcoin spot ETF listings and transactions were approved on Wednesday, Bitcoin was not approved or endorsed.
Trading starts on Thursday
This is the big news the cryptocurrency community has been waiting for.
Among them, approved distributors include Grayscale, Bitwise, Hashdex, iShares, Valkyrie, Ark 21Shares, Invesco Galaxy, Vaneck, WisdomTRE, Fidelity, and Franklin.
It is reported that the first batch of funds will begin trading on Thursday.
This determined that this could lead to the conversion of Grayscale Bitcoin Trust (Grayscale Bitcoin Trust), which holds around $29 billion in cryptocurrencies, into an ETF, and the launch of competitive funds from mainstream issuers such as BlackRock (BlackRock)'s iShares and Fidelity (Fidelity).
The approval could prove to be a milestone in mainstream finance's adoption of cryptocurrencies, as the ETF structure provides institutions and financial advisors with a familiar and regulated way to buy Bitcoin.
Cathie Wood, CEO of Ark Invest, said:
“We think it would be a green light for the agency if we and others get approval from the SEC. We've been talking to many of them, and now they're more interested because the SEC has effectively paved the way. ”
Regulators have been opposed to so-called spot Bitcoin funds for years, and in the past several companies have submitted ETF applications and then withdrawn their applications.
SEC Chairman Gary Gensler (Gary Gensler) has also been outspoken in his criticism of cryptocurrencies during his tenure.
However, regulators seem to have changed course on the ETF issue in 2023, probably due in part to losing to Grayscale in August in a court decision criticizing the SEC for blocking Bitcoin ETFs while allowing funds to track Bitcoin futures.
Asset management giant BlackRock (BlackRock) submitted applications this year, leading to a large number of applications from its competitors, and optimism about approval first emerged.
Currently, more than 10 different companies are officially launching, and the competition to become one of the market leaders is expected to include different cost ratios and a heavy marketing blitz. Several companies have already cut the fees they initially proposed.
There is no guarantee that all applications will result in the fund entering the market. The Chicago Board Options Exchange (Cboe) website said on Wednesday afternoon that several Bitcoin ETFs will begin trading on its BZX exchange on Thursday.
Expectations for ETFs also seem to have boosted the price of Bitcoin in recent months. Some cryptocurrency advocates believe that the arrival of Bitcoin ETFs will unleash new demand from investors for the asset class.
US SEC Chairman: Bitcoin has not been approved or endorsed
Earlier, the US SEC's X platform account was “hijacked” by a hacker and “false preaching” claims that the Bitcoin ETF has been approved by regulators.
SEC Chairman Gary Gensler then quickly clarified on his personal account that the agency's official account “has been hacked and an unauthorized tweet has been posted.”
At the time, he said that the SEC had yet to approve the listing and trading of Bitcoin spot exchange trading products.
However, the unauthorized post on X still caused chaos, and the Bitcoin price also shocked a “roller coaster.”
Huge fluctuations also directly led to the liquidation of more than $50 million of positions in the online cryptocurrency market within an hour, and also attracted a new round of scrutiny by the US Securities and Exchange Commission (SEC).
After the SEC officially approved the listing of a Bitcoin spot ETF, US Securities and Exchange Commission Chairman Gary Gensler still made it clear in a statement on Wednesday that his agency “did not approve or endorse Bitcoin” when signing the new product.
“Investors should be wary of the myriad risks of bitcoin and crypto-related products.”
He said Wednesday's announcement was “the most sustainable way forward” following the failure of a key court on the issue last summer.
