Spot Bitcoin ETFs Are Approved by SEC, Cleared To Start Trading Thursday (2024)

FAQs

Did Spot bitcoin ETF get approved? ›

The approval of the spot bitcoin ETFs constituted a landmark event for the $1.7 trillion digital asset industry. With institutional investors on board, demand for bitcoin will grow significantly.

[1] The approval order resolves the critical legal and regulatory issues entailed in launching a BTC ETF. Shares in trusts holding BTC can now be bought and sold on SEC-regulated exchanges, although other issues remain.

WASHINGTON/NEW YORK, Jan 10 (Reuters) - The U.S. securities regulator on Wednesday approved the first U.S.-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world's largest cryptocurrency and the broader crypto industry.

However, investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods. In addition, the regulatory landscape for crypto is evolving, and changes in regulations will undoubtedly impact the performance and availability of these ETFs.

The Securities and Exchange Commission (SEC) has greenlighted the creation of spot bitcoin ETFs, a watershed decision expected to drive billions of dollars into new funds and expose a fresh batch of investors to the ups and downs of crypto investing.

Cryptocurrency bulls say bitcoin could surge to more than $100,000 this year after the U.S. Securities and Exchange Commission made a pivotal step to approve the first-ever U.S. spot bitcoin exchange-traded fund.

Spot bitcoin ETFs set the price of shares based on the amount of bitcoin they own and its current value. Investors are then able to purchase shares of spot bitcoin ETFs that fluctuate in value based on fluctuations in the current value of bitcoin. Spot bitcoin ETFs are more accessible than buying bitcoin directly.

In early January 2024, the U.S. Securities and Exchange Commission (U.S. SEC) gave its approval on exchange-traded funds (ETFs) to track Bitcoin, giving investors an alternative pathway to accessing the world's biggest cryptocurrency.

The Securities and Exchange Commission approved 11 funds from asset managers such as Blackrock, Invesco and Fidelity late Wednesday. The wave of approvals may work in your favor as fund managers seek to attract investors by competing on fees.

What time does BTC ETF start trading? ›

The list includes ARK and 21Shares, Fidelity, Franklin Templeton, Invesco and Galaxy Digital, VanEck, WisdomTree. The rest of the 13 potential issuers applied to trade on the Nasdaq or New York Stock Exchange. The six bitcoin ETFs will start trading on the Cboe at 9:30 a.m. Thursday.

The Fidelity Wise Origin Bitcoin BTC -0.36% Fund (FBTC) is a spot bitcoin ETF that tracks the price of bitcoin. Fidelity filed for its spot bitcoin ETF in June 2023, shortly after BlackRock filed for one. The U.S. Securities and Exchange Commission approved its ETF, along with 10 others, on January 11, 2024.

There were already crypto-related ETFs and trusts out there, but there has never been a spot Bitcoin ETF on the market before the Jan. 2024 approval.

The SEC has previously rejected all spot bitcoin ETF proposals over fears of market manipulation. Accounts on X, like accounts on other social media platforms, are sometimes hijacked by stealing passwords or tricking targets into giving up their login credentials.

According to a survey conducted by Fidelity Investments, over 70% of institutional investors expressed an interest in investing in Bitcoin if a spot ETF were approved. This surge in institutional interest could significantly boost the overall market capitalization and legitimise Bitcoin as a mainstream asset class.