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11. January 2024  • clock 3 min •  Daniel Mitrovsky

SEC Approves First Spot Bitcoin ETF in the U.S.

According to the latest news, the U.S. Securities and Exchange Commission (SEC) has approved several Bitcoin exchange-traded funds (ETFs) in the United States. This is a significant milestone for the entire crypto industry and signals a growing interest in cryptoassets by traditional financial institutions.

Spot ETFs from 11 companies were given the green light by the Securities and Exchange Commission (SEC) yesterday evening (CET) after months of waiting, during which the SEC exercised its discretion and delayed the applications several times. The SEC had a final deadline yesterday for Ark Investments’ application, at which point it had to make a final decision on whether or not to approve it with no further delay for review. Additionally, it also approved 10 other applications to ensure a fair fight for clients and not leave any of the firms with a time advantage.

Spot ETFs open the door for retail investors and businesses to Bitcoin by allowing them to own shares representing Bitcoin without having to deal with buying and holding Bitcoin in their own wallets. This approach allows investors to more easily and directly participate in the cryptocurrency market because the ETF manager directly purchases and holds bitcoins, simplifying the investment process.

Applications for spot ETFs have been rejected several times in the past by the U.S. Securities and Exchange Commission (SEC). The main reason for the rejection was the SEC’s concerns about possible market manipulation. However, the situation has changed over time, and following applications from financial giants such as BlackRock and Fidelity, as well as the SEC’s loss in a lawsuit against Grayscale, the Commission has decided to reverse its rejection.

The approval of a spot Bitcoin ETF is expected to have a significant positive impact on Bitcoin’s price, mainly due to its increased availability and higher liquidity. Furthermore, the spot ETF will allow investors to gain exposure to Bitcoin through traditional investment accounts without the need for direct ownership. Also, the regulatory oversight by the U.S. Securities and Exchange Commission may provide a sense of security for many investors, who will encourage wider adoption and adoption of Bitcoin even among investors who have not yet invested in it precisely because of regulatory uncertainties.

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Daniel Mitrovsky


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