SEC approves Bitcoin ETFs for trading PUBLISHED TUE, JAN 9 20244:20 PM ESTUPDATED 2 MIN AGO Jesse Pound@/IN/JESSE-POUND@JESSERPOUND SHARE KEY POINTS The approval could prove to be a landmark event in the adoption of cryptocurrency by mainstream finance. The decision will likely lead to the conversion of the Grayscale Bitcoin Trust, which holds about $29 billion of the cryptocurrency, into an ETF. Traditional asset managers including BlackRock and Fidelity are also poised to launch bitcoin funds. Omar Marques | Lightrocket | Getty Images The Securities and Exchange Commission approved bitcoin exchange-traded funds for trading on U.S. exchanges, a long-awaited move that will give regular investors access to the controversial and volatile cryptocurrency. The decision will likely lead to the conversion of the Grayscale Bitcoin Trust, which holds about $29 billion of the cryptocurrency, into an ETF, as well as the launch of competing funds from mainstream issuers like BlackRock’s iShares. The approval could prove to be a landmark event in the adoption of cryptocurrency by mainstream finance, as the ETF structure gives institutions and financial advisors a familiar and regulated way to buy exposure to bitcoin. “We think that the SEC approval, should we and others get it, is a green light for institutions. We’ve been talking to quite a few of them, and they’re much more interested now that the SEC effectively is paving the way,” Ark Invest CEO Cathie Wood said on CNBC’s “Halftime Report” on Monday. Ark Invest has partnered with 21Shares on a proposed bitcoin fund. The SEC has for years opposed a so-called spot bitcoin fund, with several firms filing and then withdrawing applications for ETFs in the past. SEC Chair Gary Gensler has been an outspoken critic of crypto during his tenure. However, the regulator appeared to change course on the ETF question in 2023, possibly due in part to an August loss to Grayscale in court which criticized the SEC for blocking bitcoin ETFs while allowing funds that track bitcoin futures. “Today the SEC grants approval for Bitcoin ETFs for listing on all registered national securities exchanges. The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection,” Gensler said in a statement Tuesday. Optimism around approval first re-emerged this year after asset management giant BlackRock filed an application in June, leading to a flood of applications from its rivals. The partnership of Ark Invest and 21Shares has the longest active filing, and a deadline for the SEC on the fund in January led many industry experts to expect that the first bitcoin ETFs would be approved shortly after the start of 2024. More than 10 different firms are now in the formal process toward a launch, with the competition to become one of the market leaders expected to include differing expense ratios and a heavy marketing blitz. Several firms have already cut their original proposed fee. It is not guaranteed that all applications will lead to a fund entering the market. The anticipation of the ETF also appears to have boosted the price of bitcoin in recent months. Some crypto advocates believe that the arrival of bitcoin ETFs will unleash new demand for asset class from types of investors who were previously scared off by concerns about custody and the safety of crypto-specific exchanges. The approval of the ETFs comes after a year that saw major law enforcement action against crypto firms and industry leaders, including the conviction of FTX founder Sam Bankman-Fried and multiple actions against Binance and its founder Changpeng Zhao.
Yeah but it's about to be real news tomorrow. I just wanted everyone to be well aware before it happened
Oh, he's backing down tomorrow. That clown better do what we tell him to do at this point. He has no choice. Time to approve my ETF Beeyatch!