After months of anticipation, the SEC has approved the first US spot Bitcoin ETFs, which are set to start trading today.
After a dramatic false start on January 9, the United States Securities and Exchange Commission (SEC) has officially batch-approved 11 spot Bitcoin ETFs.
Asset managers with approval include ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton.
The historic decision enables investors to gain direct exposure to Bitcoin without directly buying it for the first time in the US. Rather than buying through crypto exchanges, investors can now gain access through NYSE, Cboe Global Markets and Nasdaq, without the need for self-custody.
The ETFs are likely to attract a much wider demographic of investors to Bitcoin and increase institutional adoption.
Approval comes 10 years after the Winklevoss twins filed for the first Bitcoin ETF, sparking a string of rejections from the SEC. Commissioner Hester Peirce, often dubbed ‘crypto mom‘, commented that Grayscale’s legal victory played a key role in the SEC’s change of tone.
“This saga likely would have spanned well beyond a decade were it not for the DC Circuit-ex-machina [Grayscale case],” she wrote.
In the Grayscale ruling, the court ruled that the SEC’s rejection of Grayscale’s application to convert GBTC into an ETF was “arbitrary and capricious” and ordered the Commission to review their decision.
ETFs to start trading today
Buying and selling the new ETFs could commence as early as today, January 11, when the US stock markets open at 09:00 UTC.
Last night, Bloomberg analyst James Seyffart wrote on X that ETFs will “indeed begin trading tomorrow”, and there are “no more steps needed”.
The crypto market will likely see huge inflows over the next year. VanEck analyst Patrick Bush estimates the market could see inflows of $1 billion in the first few days and $2.4 billion within the first three months.
Bitwise, one of the 11 ETF issuers, predicts that Bitcoin ETFs could capture $72 billion AUM within five years.
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