SEC Approval Triggers Bonanza, Spot Bitcoin ETFs Attract Billions on Debut
Summary:
The US Securities and Exchange Commission (SEC) officially approved spot Bitcoin Exchange-Traded Funds (ETFs), witnessing a strong demand with approximately $1.6 billion being invested on their debut on mainstream exchanges. The cryptocurrency market rallied, reaching a total value of $1.78 trillion. This development followed the SEC's approval of applications by various financial players including ARK 21Shares, Invesco Galaxy, VanEck, and Fidelity among others. The article reminds readers of the inherent risks associated with investing, urging thorough research before decision-making.
As spot Bitcoin Exchange-Traded Funds (ETFs) made their debut appearance on mainstream exchanges on January 11, they attracted billions of dollars within moments. This came hot on the heels of an official endorsement from the US Securities and Exchange Commission (SEC) on January 10, following an earlier hiccup on January 9. The launch on the previous day saw ETFs approved by the well-regarded Cboe.
Unsurprisingly, the inaugural day of trading spot Bitcoin ETFs within the US was met with a strong demand. In just minutes, around $1.6 billion worth of investment poured into the market. Grayscale's GBTC pulled in the highest volumes, leaving BlackRock's IBIT, Fidelity's FBTC and Ark's ARKB trailing behind. In a major demonstration of confidence, the SEC granted permission to 11 specific spot BTC products on January 10.
The overwhelming investor response was mirrored across the wider cryptocurrency market, with Bitcoin taking a jump towards $49,000 while Ethereum (ETH) reached a 12-month peak. As per CoinMarketCap, the combined worth of the crypto market now sits at approximately $1.78 trillion.
The Securities and Exchange Commission's approval has marked a milestone for spot Bitcoin in the US. It translated to a green light being given to the country's maiden regulated BTC exchange-traded funds (ETFs). On January 10, the SEC approved proposals by diverse entities, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton. This led to rule amendments that facilitated the spot Bitcoin ETF’s listing and trading on respective exchanges.
Following these events, multiple S-1 filings came to fruition, allowing spot Bitcoins to kick start trading. Public declarations by Bitwise and Grayscale confirmed their ETFs would start trading on Thursday ET, amid talks of simultaneous launches by other brands.
Looking back at the confusion created on January 9 related to the SEC’s X (formerly Twitter) account being compromised, it appears the SEC is on the verge of fully approving the listing of spot Bitcoin ETF's shares. Following the announcement by Cboe BZX Exchange regarding its approval for various securities listings, it is speculated that this could be a precursor to the SEC’s affirmative decision regarding spot Bitcoin ETFs.
Correspondence that the Cboe shared with the SEC on January 10 confirmed that it had accepted spot BTC ETF offerings from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, and Franklin Templeton. Intriguingly, the deadline for the final approval or dismissal of the spot Bitcoin ETF from ARK 21Shares falls on January 10. This has led to conjecture that the SEC may grant multiple approvals for asset managers at once.
As always, potential investors are reminded that investing and trading carry inherent risks. It is advisable that they undertake careful research before making any financial decisions. This article isn't meant to provide any investment advice or recommendations.
Published At
1/11/2024 11:05:12 PM
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