The U.S. SEC has officially approved the first spot Bitcoin exchange-traded funds (ETFs) after 11 years of rejecting such products, according to a Jan. 10 regulatory filing.
The first spot Bitcoin ETF application was filed in 2013, and the SEC rejected every subsequent proposal due to various concerns related to financial stability and market integrity.
All 11 ETFs approved
The approved ETFs include the Grayscale Bitcoin Trust, Bitwise Bitcoin ETF, Hashdex Bitcoin ETF, iShares Bitcoin Trust, Valkyrie Bitcoin Fund, ARK 21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Fund, and Franklin Bitcoin ETF.
Most ETF issuers have filed requests for acceleration, allowing them to launch the funds simultaneously on Jan. 11.
The Commission’s approval, issued on an accelerated basis, is a significant nod to the evolving landscape of financial instruments, especially in recognizing the potential of Bitcoin-based exchange-traded products (ETPs).
The decision is particularly notable as it overcomes previous hurdles related to preventing fraudulent and manipulative acts and practices in listing such products.
SEC concedes on surveillance concerns
In its analysis, the Commission said that surveillance-sharing agreements with regulated markets of significant size would be sufficient to address its concerns about market manipulation and fraud.
Each exchange involved has a comprehensive agreement with the Chicago Mercantile Exchange (CME) through their membership in the Intermarket Surveillance Group, which bolsters confidence in their ability to monitor and prevent market manipulation effectively.
A critical aspect of the Commission’s decision was the correlation analysis between the Bitcoin futures market and the spot Bitcoin market. The analysis revealed a consistently high correlation, suggesting that surveillance of the futures market would effectively encompass relevant activities in the spot market.
This correlation stands as a key factor in mitigating the risks of fraud and manipulation. It marks a shift in the regulator’s stance, which previously argued that no such correlation exists.
The decision is expected to pave the way for more widespread adoption of cryptocurrency-related financial products, offering investors new opportunities and diversification options in the evolving digital asset space.
At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is down 0.31% over the past 24 hours. BTC has a market capitalization of $897.56 billion with a 24-hour trading volume of $47.02 billion. Learn more about BTC ›
Market summary
At the time of press, the global cryptocurrency market is valued at at $1.73 trillion with a 24-hour volume of $104.05 billion. Bitcoin dominance is currently at 51.77%. Learn more ›
