SEC Approves Spot Bitcoin ETFs, Trading to Begin Thursday
After months of anticipation, the Securities and Exchange Commission (SEC) has finally approved a number of spot Bitcoin exchange-traded funds (ETFs). This news comes just hours after the Chicago Board Options Exchange (CBOE) approved all six of its Bitcoin ETF applications and announced that trading will commence on Thursday.
Eleven Issuers Get Green Light for Bitcoin ETFs Including ARK Invest and BlackRock
In this first wave of approvals, the SEC has given the green light to 11 issuers that applied for Bitcoin ETFs. The approved ETFs include those from ARK Invest (ARKK), BlackRock (BLK), VanEck, WisdomTree, Fidelity, Invesco, Franklin, Hashdex, Valkyrie, and Grayscale, which received approval to list its Grayscale Bitcoin Trust (GBTC) on the New York Stock Exchange (NYSE).
Bitcoin ETF Management Fees Revealed, Trading Expected to Start this Week
The issuers of the approved Bitcoin ETFs have disclosed their planned management fees, which range from 0.2% to 1.5% excluding waivers. These fees were detailed in the regulatory filings submitted on January 9 and 10. The ETFs are expected to begin trading as early as Thursday morning, with CBOE leading the way. Industry experts predict that the introduction of spot Bitcoin ETFs will attract a flood of institutional investment.
Bitcoin Price Rises After SEC Approval, Experts Predict Profit-Taking
Following the SEC’s announcement, the price of Bitcoin surged to near $45,700. However, it fell slightly after the news of CBOE’s approval, trading at around $45,500. This slide may not come as a surprise to some experts, who anticipate some profit-taking in response to the ETF news. Bitcoin rallied to 20-month highs above $45,000 by the end of 2023, having risen from around $27,000 in September, driven by the anticipation of ETF approval.
SEC Denounces False Announcement of Bitcoin ETF Approvals
It is worth noting that the official SEC’s Twitter account was compromised, resulting in a fake announcement that all the Bitcoin ETF applications had been approved. SEC Chair Gary Gensler quickly clarified the situation, confirming that the SEC had not approved any spot Bitcoin exchange-traded products. The official SEC social media account later confirmed this statement and deleted the unauthorized post. This incident caused some temporary market volatility as Bitcoin’s price briefly spiked to $47,900 after the false announcement.
The approval of spot Bitcoin ETFs by the SEC marks a significant milestone in the cryptocurrency space. With trading set to begin this week, investors and industry experts will be closely watching the market to gauge its impact on Bitcoin’s price and the broader adoption of cryptocurrencies.
Analyst comment
Positive news: SEC approves spot Bitcoin ETFs
Neutral news: Eleven issuers get green light for Bitcoin ETFs, Bitcoin ETF management fees revealed, SEC denounces false announcement of Bitcoin ETF approvals
As an analyst, I predict that the approval of spot Bitcoin ETFs will lead to increased institutional investment and potentially drive up Bitcoin’s price. However, profit-taking and temporary market volatility may occur in response to the news. The market will be closely monitored to assess the impact on Bitcoin’s price and cryptocurrency adoption.
