2025 Spot Bitcoin ETFs Approved by SEC Starting at $14B: Trading Begins Thursday

Highlights of the SEC's Historic Approval

• The U.S. Securities and Exchange Commission has given the green light to 11 spot Bitcoin ETFs.
• These ETFs will commence trading on Thursday, opening new doors for crypto investors.
• Spot Bitcoin ETFs simplify cryptocurrency investment, attracting a broader investor base and substantial capital inflows.

On Wednesday, the SEC approved 11 spot Bitcoin exchange-traded funds, paving the way for their trading debut on Thursday. This landmark decision is poised to revolutionize crypto investing by making Bitcoin more accessible to retail and institutional investors alike.

List of Approved Spot Bitcoin ETFs

The following ETFs received SEC approval:

• ARK 21Shares Bitcoin ETF (ARKB)
• Bitwise Bitcoin ETF (BITB)
• Fidelity Wise Origin Bitcoin Trust (FBTC)
• Franklin Bitcoin ETF (EZBC)
• Grayscale Bitcoin Trust (GBTC)
• Hashdex Bitcoin ETF (DEFI)
• Invesco Galaxy Bitcoin ETF (BTCO)
• iShares Bitcoin Trust (IBIT)
• Valkyrie Bitcoin Fund (BRRR)
• VanEck Bitcoin Trust (HODL)
• WisdomTree Bitcoin Fund (BTCW)

Prior to approval, many issuers reduced or waived fees to attract investors, signaling strong market anticipation.

The Long Road to Spot Bitcoin ETF Approval

The journey toward SEC approval for spot Bitcoin ETFs began in 2013 with the Winklevoss twins' initial application, which was rejected. While futures-based Bitcoin ETFs gained SEC approval starting in 2021, spot-based ETF applications faced repeated denials due to regulatory concerns over Bitcoin’s unregulated nature.

Grayscale's legal challenge against the SEC helped push for clarity, but it was BlackRock's June 2023 application that accelerated momentum. Major financial institutions like Fidelity and Franklin Templeton followed, signaling confidence in regulatory approval.

Despite some hiccups, including a mistaken SEC social media announcement that briefly spiked Bitcoin prices, the regulatory path has now been cleared.

Implications of SEC Approval for Bitcoin Investors

The SEC’s approval acts as a key regulatory endorsement, reducing investor apprehension and enabling investments through trusted financial firms. However, SEC Chair Gary Gensler cautioned investors to remain mindful of Bitcoin’s inherent risks.

Unlike previous options requiring direct coin ownership or futures ETFs, spot Bitcoin ETFs allow investors to hold Bitcoin exposure conveniently within brokerage accounts, eliminating the need for digital wallets.

Market analysts forecast substantial capital inflows, with Bloomberg Intelligence estimating the spot Bitcoin ETF market could reach $100 billion over time. Galaxy Digital projects inflows growing from $14 billion in the first year to $39 billion within three years.

Update as of January 10, 2024: This article includes the latest comments from the SEC.

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