In a monumental development, the U.S. is poised to witness the launch of its inaugural spot Bitcoin ETFs (exchange-traded funds), marking a watershed moment for American investors seeking exposure to the 15-year-old cryptocurrency.
Federal regulators have given their seal of approval to the 19b-4 filings submitted by the New York Stock Exchange, Nasdaq, and Cboe Global Markets. This green light grants these markets the permission to list and offer trading in the securities, with the anticipated launch as early as Thursday.
Notable financial giants, including BlackRock, Fidelity, and Grayscale, among others, have been vying to introduce Bitcoin ETFs. Recent announcements, coupled with fee adjustments, hint at an impending fierce competition to attract investors' funds. These are spot ETFs, distinguished by their direct holding of Bitcoin itself, unlike the already-approved Bitcoin futures ETFs, which deal with derivatives contracts tied to BTC.
The SEC's approval follows years of delays and rejections in the pursuit of launching spot Bitcoin ETFs. It comes on the heels of a significant legal setback for the SEC, where the D.C. Circuit Court of Appeals deemed the rejection of Grayscale's attempt to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF as "arbitrary and capricious."
Advocates for spot Bitcoin ETFs argue that these regulated trading products offer a gateway for institutional and retail clients to access Bitcoin's price movements without the need for direct investments or the setup of digital wallets. ETF shares, soon to be available to any U.S. investor with a brokerage account, promise a more accessible avenue into the world of cryptocurrencies.
The SEC's approval in early 2024 seemed increasingly likely toward the end of 2023, following a series of meetings and amendments to ETF S-1 filings. The final 19b-4 submissions from NYSE Arca, Cboe BZX, and Nasdaq align with the amended filings from ETF issuers like Galaxy/Invesco, Ark, and Franklin Templeton.
Brokerages such as Fidelity and E-Trade have started adding tickers tied to these ETFs on their platforms. The optimism surrounding spot ETFs has propelled Bitcoin's price from around $27,000 on Oct 1 to over $45,000 at the start of 2024.
As the crypto community eagerly anticipates this groundbreaking launch, shares of the Grayscale Bitcoin Trust (GBTC), now granted conversion into an ETF, surged to $40, its highest price since December 2021.
Jenn Rosenthal, VP for Communications at Grayscale, confirmed regulatory approvals for the uplisting of GBTC to NYSE Arca, signaling another milestone in the evolving crypto landscape.
In a surprising turn, the SEC initially published and subsequently removed an order approving the U.S.'s first spot Bitcoin ETFs on Wednesday, adding an element of intrigue to this historic development.
Stay tuned for more updates on this historic event and follow @MeMeLauncher for ongoing insights and expert perspectives on the evolving crypto space. Like and share to spread awareness within the crypto community. Your support is crucial in shaping an informed and empowered community. 🌐🚀