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In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has given the green light to several Bitcoin spot exchange-traded funds (ETFs) after months of anticipation. The official announcement from the SEC can be found here.
The approval of these ETFs, filed by major asset management firms, marks a significant development, with all applications granted simultaneously, well ahead of the expected deadline of January 10, 2023. The list includes prominent names such as BlackRock, Grayscale Investments, Ark Invest & 21Shares, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, Valkyrie, Global X, Hashdex, Franklin Templeton, and Pando Asset Management.
This approval comes after numerous unsuccessful attempts by various firms since 2013 to launch a spot Bitcoin exchange-traded fund. The SEC had consistently cited concerns about potential market manipulation in spot markets as a primary reason for rejecting such proposals. However, Bitcoin futures ETFs secured approval in October 2021, contributing to Bitcoin's surge to an all-time high of $69,000 in November 2021.
In recent months, extensive discussions and meetings between ETF applicants and regulatory bodies took place, leading to amendments in S1 filings. Notably, these revisions included the introduction of shares created with cash and the establishment of a "surveillance-sharing agreement" in response to concerns about spot market manipulation. Many of these agreements involved U.S.-based cryptocurrency exchange Coinbase, serving as a surveillance partner.
This breakthrough decision by the SEC is expected to have a profound impact on the cryptocurrency market, offering new avenues for institutional and retail investors to participate in Bitcoin's growth. As the ETF landscape continues to evolve, market participants will closely monitor the unfolding developments and their repercussions on the broader digital asset space.
