SEC approves the listing and trading of spot BTC ETFs on stock exchanges

At the same time, Gary Gensler emphasized that his agency still does not support bitcoin

11.01.2024 - 08:14

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2 min

What’s new? The US Securities and Exchange Commission (SEC) has approved spot bitcoin exchange-traded funds (ETFs). According to a press release from Gary Gensler, head of the agency, several investment companies have been authorized to list and trade ETF shares on stock exchanges. He noted that in its decision the Commission relied on the Court of Appeals’ ruling on the Grayscale lawsuit, according to which the SEC “failed to adequately explain its reasoning in disapproving” such products.

Press release

What else is known? Gensler emphasized that the new decision only affects bitcoin-based exchange-traded products, which the Commission categorizes as commodities, and it “in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.” Gensler concluded.

ETFs from Grayscale (ticker GBTC), Bitwise (BITB), and Hashdex (DEFI) are admitted to the NYSE Arca exchange, according to SEC filings. BlackRock (IBIT) and Valkyrie (BRRRR) funds are launching on Nasdaq. The CBOE will host the VanEck (HODL), Wisdom Tree (BTCW), Fidelity (FBTC), Franklin Templeton (EZBC) ETFs, as well as mutual funds from ARK Invest and 21 Shares (ARKB) and Invesco and Galaxy (BTCO).

The firms previously announced initial funding levels and fund management fees. Grayscale set the highest fee compared to its competitors at 1,5%.

After the ETF was approved, bitcoin’s exchange rate momentarily rose to $47 478, but then corrected to $47 076 (as of January 11, 08:00 UTC, according to Binance data). The daily growth amounted to 0,67%.

A day earlier, a hacker broke into the SEC’s X account and posted a fake about the approval of spot BTC ETFs, which caused only minor fluctuations in the asset’s price. QCP Capital explained the lack of a noticeable increase by the fact that this event had already been factored into the price of the asset. Analysts do not expect a rally after the real approval of the ETF, highlighting $48 500 as a resistance level.

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