The United States Securities and Exchange Commission (SEC) has finally approved the launch of Bitcoin spot exchange-traded funds.
In a groundbreaking move, the securities regulator approved a total of 11 spot-based Bitcoin ETF applications filed by top asset management companies.
Some asset managers that received the SEC’s blessings include Ark Invest and 21Shares, BlackRock, Fidelity Investment, and Hashdex.
Valkyrie Anticipates Massive Inflow
Following the approval, the spot Bitcoin ETFs will commence trading today. Interestingly, the Cboe BZX Exchange published a list of six spot-based Bitcoin ETFs that will be traded on its platform today.
These include Fidelity Investment, Franklin, VanEck, WisdomTree, Invesco Galaxy, and Ark 21Shares ETFs.
Once trading commences, these investment products could attract large inflows. In a recent interview, Valkyrie co-founder Steven McClurg speculates that all asset managers could see up to $5 billion inflow in the first quarter.
Gensler Votes in Favor of Bitcoin ETFs
The development comes after SEC commissioners voted to decide whether to approve or deny the multiple Bitcoin spot ETF applications. In a tweet yesterday, prominent Fox Business journalist Eleanor Terrett shared the result of the voting exercise.
Three of the five SEC commissioners voted in favor of spot-based Bitcoin ETFs, while two officials were against the products. According to the document shared by Terrett, SEC chair Gary Gensler voted for the approval of the physically settled Bitcoin ETFs.
In addition, SEC’s Hester Peirce and Mark Uyeda also voted in favor of the ETFs. However, Caroline Crenshaw and Jaime Lizárraga voted against the investment products.
?NEW: Turns out the @SECGov DID hold a vote on the $BTC Spot ETFs.
Here’s the voting breakdown:
Gensler: Approved
Peirce: Approved
Uyeda: Approved
Crenshaw: Not Approved
Lizárraga: Not Approved pic.twitter.com/LWcraQpoQF— Eleanor Terrett (@EleanorTerrett) January 10, 2024
In the past years, the SEC had denied the launch of spot-based Bitcoin ETFs, claiming that these products carry substantial risks. However, the SEC was put under intense pressure last year after recording a resounding defeat against Grayscale in court.
As reported earlier, the court slammed the SEC for denying Grayscale Investment’s request to convert its existing Bitcoin Trust into an ETF. Consequently, it ordered the agency to review its decision on the Grayscale filing.
Interestingly, Gensler noted that since the court remanded the matter to the commission, he felt that “the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.”
In the meantime, Bitcoin did not react positively to the approval of these ETFs as many expected. In the hours leading up to press time, the top asset was down 0.5% on the daily charts to $45,811.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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