Securities and Exchange Commission officially approved several planned bitcoin spot ETFs. It is an important milestone for both the fund and cryptocurrency industries.
According to a filing on Wednesday, the regulator approved proposals from BlackRock, Fidelity and Grayscale as well as VanEck and Valkyrie. It also accepted those by Ark Invest, 21Shares and WisdomTree.
It was a time when there had not been any “effective” registration statements — a necessary step for final spot bitcoin ETFs to list — as of 4:30 pm ET.
At 4:30pm ET, bitcoin’s price is around $45,800.
Click here to read moreSEC’s website removes a notice approving a spot ETF for bitcoin.
The SEC’s official announcement came Wednesday — a day after the SEC’s X account made an “unauthorized tweet” Gary Gensler, the SEC chair at that time, said it was premature to approve such funds.
Gensler issued a public statement confirming Wednesday’s approvals.
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin,” Gensler said. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”
In a Wednesday statement, a Grayscale spokesperson told Blockworks that the company was headquartered in California. “received necessary regulatory approvals” NYSE Arca will list its Bitcoin Trust, GBTC.
Samir Kerbage is the Hashdex chief investment officer. “a monumental day in the history of digital assets.”
“The approval of 19b-4s marks the next phase for the industry by allowing US investors to fully participate in the promise of bitcoin, and we are thrilled to play a leading role in this next wave of growth and innovation,” He also added.
The SEC’s decision was not unexpected, as the regulator had repeatedly barred such funds.
Bloomberg Intelligence had estimated the approval rate at 90% during recent months. And executives noted that a “pattern break” The SEC’s constructive dialogue with fund issuers.
Ark Invest and 21Shares redoubled their efforts to launch a bitcoin spot ETF in April. Asset management giant BlackRock filed for a similar offering to be launched in June. This sparked a wave of revisions from a number of issuers.
It was approved before SEC’s deadline on Jan. 10, 2019, to make a decision about the ARK Bitcoin ETF. Ark Invest CEO Cathie Wood, as well as analysts, expected more than one ETF to be approved by the SEC before the Jan. 10 deadline.
Grayscale Investments notched a court victory over the SEC in August — a decision segment observers said put additional pressure on the regulator to approve bitcoin ETFs. In October, the SEC decided not to appeal this ruling. This decision contributed to an extended bitcoin rally.
Galaxy Digital’s CEO Mike Novogratz told analysts during a call for earnings in November of last year that an ETF to track bitcoin would be released. “open the door” Institutions are interested in the crypto-space. Invesco teamed with his company for the spot bid on bitcoin ETF.
“There will be volatility around the announcement; there will be volatility around the actual implementation of an ETF,” Novogratz noted this at the time. “But I think six months, 12 months down the road, you will have seen a lot of capital — small for portfolios, a lot in aggregate — shift into our space.”
In fact, according to Bitwise and VettaFi, 88% percent of financial advisers are interested in BTC but they’re waiting on the release of an ETF that tracks bitcoin spot prices.
Ark’s Wood stated during a webinar in December that the approval of a bitcoin spot ETF could be viewed as enabling. “the final seal of approval” Institutions considering involvement in crypto space.
Before the approval of the application, there was a war between potential issuers. Bitwise, BlackRock, Ark Invest and Fidelity were among a handful of firms to recently update their planned fund fees below 0.30% — levels that segment observers noted reflect the upcoming fight for assets.
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