The just announced highly anticipated Bitcoin ETF approval by the US SEC (Security and Exchange Commission) has created a surge of joy in the crypto community across the globe.
According to the official statement published by Chair Gary Gensler: The U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of multiple spot Bitcoin Exchange-Traded Products (ETPs), according to a statement released on January 10, 2024, by Chair Gary Gensler. This decision marks a historic moment for Bitcoin and the greater cryptocurrency sector.
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What is ETF?
For those who don’t actually know what Bitcoin ETF means, let me explain it for you in layman’s terms.
An ETF, or Exchange-Traded Fund, is a type of investment fund and exchange-traded product that holds a collection of assets such as stocks, bonds, or commodities. ETFs are designed to track the performance of a specific index or benchmark, providing investors with exposure to a diversified portfolio of assets. These funds are traded on stock exchanges, similar to individual stocks.
Bitcoin ETF therefore means that Bitcoin will not be traded on the global stock exchange markets, same way as gold, oil, silver, apple stock, etc. In essence, you no longer need a cryptocurrency exchange to invest in Bitcoin. You can simply use a stock broker for it.
Why Bitcoin ETF was Disapproved In Previous Times
Gensler’s statement clarifies previous disapprovals of a number of ETPs in the past, including Grayscale’s proposal for converting their Bitcoin Trust into an ETP. However, a recent ruling by the U.S. Court of Appeals for the District of Columbia suggested the SEC failed to adequately justify its rejection of Grayscale’s proposal. In response, the Commission has decided to approve the new ETPs.
Gensler further explained that the SEC’s approval is limited to ETPs holding a non-security commodity, Bitcoin, and this should not be interpreted as a sign of the Commission’s stance on other crypto assets. The SEC will continue to enforce strict compliance with regulations, and Gensler highlighted bearers of crypto assets should remain aware of the risks associated with Bitcoin and its linked products.
Today’s decision by SEC brings potential new opportunities for investors to participate in the Bitcoin market in potentially more secure ways. However, as with all investments, due diligence is crucial, and investors are encouraged to understand both the potential rewards and risks. Investors can trust that Binance will continue to provide them with updated and relevant news developments in the crypto market.
In line with recent developments, the U.S. Securities and Exchange Commission (SEC) has made the approval documents for spot Bitcoin Exchange-Traded Funds (ETFs) publicly accessible. Interested parties can now refer to these documents for a comprehensive understanding of the regulatory stance and the framework within which these spot Bitcoin ETFs have been approved.
Bitcoin ETF SEC Approval Document
List Of Approved Bitcoin Spot ETFs
- ARK and 21Shares: $ARKB
- Bitwise: $BITB
- BlackRock (iShares): $IBTC
- Fidelity: $FBTC
- Franklin: $EZBC
- Grayscale: $GBTC
- Hashdex: $DEFI
- Invesco Galaxy: $BTCO
- VanEck: $HODL
- Valkyrie: $BRRR
- WisdomTree: $BTCW
The approved ETFs will start trading on the stock exchange from tomorrow. From now on, Bitcoin will be able to be bought and sold via ETFs on the world’s leading exchanges such as the New York Stock Exchange, Nasdaq and CBOE. ETFs will allow Bitcoin to gain a share of a Sunday that exceeds $ 6 trillion.
Though there has not been a significant price change in the Bitcoin price yet after the decision, it is a matter of curiosity how much to invest in Bitcoin ETFs. Estimates reach up to $100 billion for total investments through 2024. It is estimated that an investment at this level can significantly increase the price of Bitcoin.
