The U.S. Securities and Exchange Commission (SEC) has officially approved the first spot Bitcoin exchange-traded funds (ETFs), marking a significant shift in the financial landscape. This decision comes after 11 years of rejecting such products due to concerns related to financial stability and market integrity, according to a regulatory filing on January 10.
The first application for a spot Bitcoin ETF was filed in 2013, and every subsequent proposal was rejected by the SEC. However, this recent approval signals a new era for cryptocurrency in mainstream finance.
The approved ETFs include the Grayscale Bitcoin Trust, Bitwise Bitcoin ETF, Hashdex Bitcoin ETF, iShares Bitcoin Trust, Valkyrie Bitcoin Fund, ARK 21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Fund, and Franklin Bitcoin ETF. Most ETF issuers have filed requests for acceleration, allowing them to launch the funds simultaneously on January 11.
The Commission’s approval, issued on an accelerated basis, recognizes the potential of Bitcoin-based exchange-traded products (ETPs). This decision is particularly notable as it overcomes previous hurdles related to preventing fraudulent and manipulative acts and practices in listing such products.
In its analysis, the Commission stated that surveillance-sharing agreements with regulated markets of significant size would be sufficient to address its concerns about market manipulation and fraud. Each exchange involved has a comprehensive agreement with the Chicago Mercantile Exchange (CME) through their membership in the Intermarket Surveillance Group, which bolsters confidence in their ability to monitor and prevent market manipulation effectively.
A critical aspect of the Commission’s decision was the correlation analysis between the Bitcoin futures market and the spot Bitcoin market. The analysis revealed a consistently high correlation, suggesting that surveillance of the futures market would effectively encompass relevant activities in the spot market. This correlation stands as a key factor in mitigating the risks of fraud and manipulation. It marks a shift in the regulator’s stance, which previously argued that no such correlation exists.
The decision is expected to pave the way for more widespread adoption of cryptocurrency-related financial products, offering investors new opportunities and diversification options in the evolving digital asset space.
At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is down 0.31% over the past 24 hours. BTC has a market capitalization of $897.56 billion with a 24-hour trading volume of $47.02 billion.
The global cryptocurrency market is valued at $1.73 trillion with a 24-hour volume of $104.05 billion. Bitcoin dominance is currently at 51.77%.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | Invesco Galaxy Bitcoin ETF, Valkyrie Bitcoin Fund, Franklin Bitcoin ETF, Grayscale Bitcoin Trust, iShares Bitcoin Trust, VanEck Bitcoin Trust, U.S. SEC, ARK 21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, WisdomTree Bitcoin Fund, Hashdex Bitcoin ETF, Intermarket Surveillance Group, Chicago Mercantile Exchange |
| Currencies | Bitcoin |
| Securities | Valkyrie Bitcoin Fund, Grayscale Bitcoin Trust, iShares Bitcoin Trust, Bitwise Bitcoin ETF, Hashdex Bitcoin ETF |
