The US Securities and Exchange Commission (SEC) has given the green light to 11 spot Bitcoin exchange-traded funds (ETFs).
Today's landmark approval includes ETFs from major asset management firms such as BlackRock, Grayscale and Valkyrie, and is expected to pave the way for significant investment inflows into the digital asset space.
The SEC's decision comes after a period of anticipation and speculation within the industry, with more than a dozen companies having filed applications to issue these investment products. This move is considered a turning point that could lead to greater acceptance and integration of Bitcoin into traditional financial markets.
The approved ETFs, which allow direct investment in Bitcoin rather than derivatives, are expected to attract billions of dollars in the first weeks of trading.
The SEC's approval of Bitcoin spot ETFs is expected to provide investors with a more regulated and accessible means of gaining exposure to Bitcoin, which could lead to greater adoption and stability for the cryptocurrency market.
The SEC document, which appeared briefly on its website before generating a 404 error, stated that the proposals are in line with the Exchange Act and applicable regulations. This comes after a previous ruling that was criticized for being arbitrary in rejecting Grayscale's offer to convert its Bitcoin trust into an ETF. Grayscale has since confirmed that The block that has received the necessary regulatory approvals to list its Bitcoin trust in an ETF on NYSE Arca.
Prior to SEC approval, ETF applicants were engaged in a competitive race to offer the lowest fees to attract investors. Bitwise, for example, set its fee at zero for the first six months or until it reaches $1 billion in assets, and then at 0.2% thereafter. BlackRock has offered a discounted fee of 0.2% for the first 12 months or until the fund reaches $5 billion in assets, with a subsequent increase to 0.3%.
The SEC's approval of Bitcoin spot ETFs is a watershed moment for the cryptocurrency industry as it opens the door for mainstream investors to participate in the digital asset market through a regulated framework.
