Historic Breakthrough: U.S. Approves Bitcoin ETFs, Opening New Avenues for Crypto Investment
After a decade-long wait, the U.S. Securities and Exchange Commission (SEC) grants approval for the first-ever Bitcoin Exchange-Traded Funds (ETFs). This landmark decision is poised to revolutionize the cryptocurrency market, providing a regulated platform for widespread investment in Bitcoin.
In the U.S., Bitcoin ETFs have been approved for the first time, marking a significant event for the cryptocurrency market. After a decade of anticipation, the U.S. Securities and Exchange Commission (SEC) granted approval for the creation of the first exchange-traded funds (ETFs) based on Bitcoin. These funds will allow investors to trade shares, providing them with access to cryptocurrency without the need for direct interaction.
Exchange-traded funds (ETFs) have gained popularity due to their convenient structure, giving investors access to various assets through trading shares on stock exchanges. This SEC approval opens a new source of capital for the crypto market, offering regulated organizations the opportunity to invest in Bitcoin.
This milestone comes after years of waiting and the rejection of previous applications, citing market immaturity, the presence of fraud, and the risk of cryptocurrency price manipulation. However, the legal battle between Grayscale and the SEC in 2023 played a crucial role in changing the regulator's stance on Bitcoin ETFs.
Now, with the approval of spot Bitcoin ETFs, attention is focused on how much capital the new market will attract and which companies will emerge as leaders among the 11 approved issuers. Spot Bitcoin ETFs provide institutional investors with a legal means of investing in cryptocurrency without the need for direct ownership of Bitcoin and the associated risks.
This decision mirrors the gold ETF model, which attracted over $100 billion in investments. Standard Chartered Bank predicts that thanks to the approval of spot Bitcoin ETFs in the U.S., the price of Bitcoin may rise to $100,000 by the end of 2024.
At the opening of the U.S. trading session, the combined trading volume of shares from the 11 spot ETFs exceeded $1 billion within the first 30 minutes, reported Bloomberg ETF market analyst James Seifert. Simultaneously, the price of Bitcoin reached $49,000 for the first time since 2022.
BTC/USD 46,354 +101 (0.22%)
The day before, the U.S. Securities and Exchange Commission (SEC) approved the launch of 11 exchange-traded funds (ETFs) directly investing in Bitcoin. This is expected to be a significant milestone for the digital asset sector, providing access to the largest cryptocurrency on the traditional U.S. financial market and beyond.
The U.S. approves Bitcoin ETFs for the first time.
The SEC has approved funds from all applicant companies, including BlackRock and Fidelity Investments, to commence trading shares on the New York Stock Exchange (NYSE), NASDAQ, and the Chicago Board Options Exchange (CBOE).
List of exchange tickers for spot Bitcoin ETFs:
- ARK / 21Shares: ARKB (CBOE)
- Bitwise: BITB (NYSE)
- BlackRock (iShares): IBIT (NASDAQ)
- Fidelity: FBTC (CBOE)
- Franklin: EZBC (CBOE)
- Grayscale: GBTC (NYSE)
- Hashdex: DEFI (NYSE)
- Invesco Galaxy: BTCO (CBOE)
- VanEck: HODL (CBOE)
- Valkyrie: BRRR (NASDAQ)
- WisdomTree: BTCW (CBOE)
Top performers include funds from BlackRock, Grayscale, and Fidelity Investments, while the worst performers are from Franklin Templeton, WisdomTree, and VanEck.
