The US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applications.
Blackrock, the world’s largest asset management company, and VanEck, WisdomTree (WT.N), Fidelity, Bitwise, Grayscale Investmens and Invesco were among the firms that applied to the SEC for the spot Bitcoin ETF.
The first transactions will start on Thursday.
SEC Chairman Gary Gensler reported that the listing and trading of spot Bitcoin ETF shares has been approved.
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Reminding that the Commission did not approve more than 20 spot Bitcoin ETF applications until March 2023, Gensler stated that they are facing a new series of similar applications, but the conditions have changed.
Gensler recalled that a federal court in the US found the SEC’s rejection of Grayscale’s application in this context to be erroneous last year, and stated that he thinks the most sustainable way forward is to approve the listing and trading of spot Bitcoin ETF shares.
Underlining that the SEC’s approval today is for ETFs, Gensler emphasized that the decision should not indicate the Commission’s willingness to approve listing standards for crypto asset securities.
Gensler reiterated his view that the vast majority of crypto assets are investment contracts and thus subject to federal securities laws.
“Bitcoin is a speculative asset”
Gensler mentioned that today’s SEC decision includes certain protections for investors and noted that full, fair and accurate disclosures should be made about Bitcoin ETFs.
“Such regulated exchanges are required to have rules designed to prevent fraud and manipulation, and we will monitor them closely to make sure they follow those rules,” Gensler said, noting that these products will be listed and traded on registered national securities exchanges.
Rise in Bitcoin
The SEC approval could be a turning point for the $1.7 trillion digital asset sector. The development is important for cryptocurrencies to gain acceptance in mainstream financial markets.
At midnight on Tuesday, the SEC account was hacked and a post was made about the approval of spot Bitcoin Exchange Traded Funds, and then it was stated that the post was unauthorized.
After the SEC approval, the bitcoin price was traded at $ 45,729, up close to 1 percent. The cryptocurrency, which fell 64 percent in 2022, doubled in 2023 with the expectation that the SEC would approve ETFs.
