The U.S. Securities and Exchange Commission (SEC) has officially approved several exchange-traded fund (ETF) applications tied to spot Bitcoin prices after a recent false start on January 9th. This decision paves the way for the first regulated exchange product in the U.S. that provides investors with direct access to Bitcoin prices without the need to purchase or worry about self-storage. Investors will buy shares in the ETF, whose main asset is Bitcoin.
SEC Chairman Gary Gensler emphasized that the approval of spot Bitcoin ETFs is the result of changing circumstances and court decisions. From 2018 to March 2023, the SEC rejected more than 20 applications for spot Bitcoin ETFs, including Grayscale’s application to convert the Grayscale Bitcoin Trust into an ETP. However, following a decision by the District of Columbia Court of Appeals, which pointed out the SEC’s insufficient justification in denying Grayscale, the commission was forced to reconsider its position. Gensler stressed that the SEC operates within the law and does not take a position on specific companies or investments, nor does it endorse cryptocurrency trading platforms or intermediaries, most of which do not comply with federal securities laws.
On January 10th, the SEC approved 19b-4 applications from companies ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This approval allows the listing and trading of spot Bitcoin ETFs on the respective exchanges. Until this point, the SEC consistently rejected all applications for spot Bitcoin ETFs, expressing concerns about potential market manipulation and fraud.
