The Securities and Exchange Commission has approved the first spot bitcoin exchange-traded fund in a victory for the cryptocurrency world.
The SEC announced its approval on Wednesday. Some crypto analysts had expected that it would give the greenlight, and ahead of the decision, bitcoin and other cryptocurrencies had been growing in value as anticipation built.
The SEC approved 11 of the applications in a major win for bitcoin and crypto evangelists.
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin,” SEC Chairman Gary Gensler said in a statement. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”
After the announcement of the approval, bitcoin was up slightly to $45,800.
The move will broaden exposure of bitcoin to more investors, and the 11 funds will be able to begin trading on Thursday.
The decision was a long time coming and highly anticipated. Ahead of the news, the SEC’s X, formerly Twitter, account posted Tuesday that the ETFs had been approved, although the agency said its account had been compromised.
The price of bitcoin has largely moved upward over the past few months as anticipation about the ETFs’ approvals grew. While the flagship digital asset languished in 2022, it blossomed last year and regained much of its lost ground.
Bitcoin was trading at just about $16,600 at the start of 2023 but charged to over $44,000 as the calendar flipped to 2024, offering those who bought last January massive 165% returns.
House Financial Services Committee Chairman Patrick McHenry (R-NC) and Chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee French Hill (R-AR) offered a joint statement praising the SEC decision.
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“Today’s spot Bitcoin ETF approvals mark a historic milestone for the future of the digital asset ecosystem in the United States,” they said. “While legislation to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over the SEC’s track record of regulation by enforcement.
“We are pleased that investors and our markets will finally be afforded greater access to this generational technology,” the lawmakers added.
