US regulators have approved bitcoin ETFs, dramatically broadening access to the 15-year-old cryptocurrency, reports CoinDesk.
The Securities and Exchange Commission on Wednesday declared effective key filings from the markets seeking to list the groundbreaking products. They will begin trading on Thursday (11/01/2024).
About a dozen companies, including BlackRock, Fidelity and Grayscale, sought to create bitcoin (BTC) ETFs. In recent days, they have announced – and, in some cases, slashed – the fees they plan to charge investors, suggesting a fierce battle to win investors’ money is ahead. These are spot ETFs, meaning they hold bitcoin itself, versus the already-approved bitcoin futures ETFs, which hold derivatives contracts tied to BTC.
The green light from the SEC follows many years of delays and outright rejections of numerous attempts to launch spot bitcoin ETFs. It also comes just a few months after the agency was handed a resounding loss in court. The DC Circuit Court of Appeals in August ruled the SEC was “arbitrary and capricious” in its decision to reject Grayscale’s attempt to convert its roughly $26 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF.
In a statement, SEC Chair Gary Gensler pointed to a court loss in 2023 as part of its impetus to approve the dozen or so filings.
