SEC Approves Spot Bitcoin ETFs: Historic Decision Amid Market Volatility
Summary:
The U.S Securities and Exchange Commission (SEC) has approved a range of spot Bitcoin ETFs from BlackRock and Grayscale, allowing investors direct exposure to Bitcoin prices. Despite concerns over the SEC's "significant size" test and a potential delay due to recent false news spread on the SEC's social media account, the approval is a landmark decision and expected to start trading from Thursday, January 11. Bitcoin's value experienced a temporary dip below $45,000, yet remains 6% higher compared to the previous week.
Subsequent to an initial miscommunication on January 9th, the U.S Securities and Exchange Commission (SEC) has at last granted approval to a range of spot Bitcoin ETFs. The first of these, BlackRock's iShares Bitcoin Trust, began pre-market trades, currently witnessing a significant rise of roughly 22.25%, at a trading price of $26.81. The trust is listed on the Nasdaq exchange.
Grayscale's Bitcoin Trust (GBTC) ETF also began pre-market trading, marking a 2% increase. GBTC is listed on the New York Stock Exchange (NYSE). Despite voting favorably for the approval of these ETF applications, SEC Commissioner Mark Uyeda voiced strong worries about the justification used to grant these approvals, suggesting it could have far-reaching implications. Uyeda asserts the SEC overlooked the chance to treat Bitcoin like any other commodity, criticizing the unique "significant size" test the Bitcoin ETFs failed to comply with.
In officially ratifying the US' inaugural regulated spot Bitcoin ETFs, the SEC has made a monumental decision. This will permit investors to gain exposure to Bitcoin's price without actually purchasing Bitcoin or fretting over self-custody. The approvals, expected to occur between 4:00 pm and 6:00 pm ET today, are being celebrated in the community. As suggested by Bloomberg ETF analyst, Eric Balchunas, upon receipt of the approvals, the first spot Bitcoin ETFs should begin trading from Thursday, Jan. 11.
However, some predict a potential delay in the US approval process of a spot Bitcoin ETF, owing to rumors of the SEC's social media account being compromised, resulting in the spreading of false ETF approvals on January 9th. Bitcoin experienced some instability in the wake of this anticipated ETF decision, with its price temporarily falling below $45,000. At this point in time, Bitcoin is valued at approximately $45,082, marking a decrease, yet it remains 6% higher in comparison to the previous week. Bitcoin is currently 51% below its all-time high of $68,000 from November 2021, according to CoinGecko.
Published At
1/11/2024 2:18:53 PM
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