This decision marks a significant leap forward, allowing Americans to invest in financial instruments directly tracking the 15-year-old cryptocurrency.
Several major players in the asset management industry, including BlackRock, Fidelity, and Grayscale, have been striving to introduce Bitcoin ETFs for over a decade. The recent green light from the SEC follows a flurry of activity, with companies announcing and adjusting their fee structures in anticipation of a fierce competition to attract investor funds.
These approved spot ETFs differ from their futures counterparts by holding actual Bitcoin instead of derivatives contracts tied to BTC. The SEC's decision represents a notable shift after years of delays and rejections for various attempts to launch spot Bitcoin ETFs.
The move comes on the heels of a court ruling against the SEC, which 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 both institutional and retail clients to gain exposure to Bitcoin's price movements without directly holding the digital asset.
The approval, expected since late 2023, gained momentum with a series of meetings between the SEC and proposed ETF issuers, accompanied by amendments to ETF filings. With the final 19b-4 submissions from major exchanges like NYSE Arca, Cboe BZX, and Nasdaq, the path is now clear for trading to commence, potentially as early as Thursday.
Brokerages such as Fidelity and E-Trade have already started integrating tickers tied to these ETFs onto their platforms. The optimism surrounding spot ETFs has contributed to Bitcoin's price surge, soaring from around $27,000 on October 1 to over $45,000 at the beginning of 2024.
The aSEC's historic approval signals not only a pivotal moment for Bitcoin but also a potential catalyst for a broader bull run in the altcoin market.#BTC #etf #SECApprovalJourney #altseason2024