SEC Greenlights 11 Spot Bitcoin ETFs, Paving the Way for Crypto Investment

SEC headquarters with a Bitcoin logo marked with an approval sign

The U.S. Securities and Exchange Commission (SEC) has given the nod for the launch of 11 spot bitcoin exchange-traded funds (ETFs), set to commence trading on Thursday. This regulatory approval is poised to make cryptocurrency investing more accessible, ushering in substantial capital into the crypto space. The 11 approved spot bitcoin ETFs, each from different issuers, bring diverse features and proposed ticker symbols.

Giving Investors Direct Exposure to Bitcoin

On January 10, 2024, the SEC’s announcement marked a significant milestone in the cryptocurrency industry with the approval of the first-ever spot bitcoin ETFs in the United States. This green light follows months of anticipation and scrutiny from both regulators and investors.

Distinguishing themselves from existing crypto-related ETFs and trusts that deal with bitcoin futures or derivatives, spot bitcoin ETFs directly track the cryptocurrency’s price by holding a substantial amount of it. This approach offers investors direct exposure to BTC without the intricacies and risks associated with buying and storing the digital asset.

Increased Acceptance of Cryptocurrency with Traditional Finance

The SEC’s approval is not only historic for the crypto industry but also signals an increased acceptance and acknowledgment of cryptocurrency within the traditional financial landscape. The news has generated excitement among other crypto-related tokens, poised to benefit from heightened demand and liquidity.

11 Approved Bitcoin Spot ETFs

The 11 approved spot bitcoin ETFs hail from various issuers, each presenting unique features. Here’s a brief overview of the approved ETFs:

Blackrock’s iShares Bitcoin Trust (IBIT): This is one of the largest and most established asset managers in the world, offering a range of investment products across various asset classes. Its iShares Bitcoin Trust aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

ARK 21Shares Bitcoin ETF (ARKB): This is an actively managed fund that seeks to track the performance of an index composed of 21 companies that are involved in or benefit from bitcoin or blockchain technology.

WisdomTree Bitcoin Fund (BTCW): This is a passive fund that seeks to track the performance of an index composed of six companies that are involved in or benefit from bitcoin or blockchain technology.

Invesco Galaxy Bitcoin ETF (BTCO): This is an actively managed fund that seeks to track the performance of an index composed of four companies that are involved in or benefit from bitcoin or blockchain technology.

Bitwise Bitcoin ETF (BITB): This is an actively managed fund that seeks to track the performance of an index composed of nine companies that are involved in or benefit from bitcoin or blockchain technology.

VanEck Bitcoin Trust (HODL): This is one of the oldest and most reputable asset managers in the world, offering a range of investment products across various asset classes. Its VanEck Bitcoin Trust aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

Franklin Bitcoin ETF (EZBC): This is one of the largest and most diversified asset managers in the world, offering a range of investment products across various asset classes. Its Franklin Bitcoin ETF aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

Fidelity Wise Origin Bitcoin Trust (FBTC): This is one of the leading custodian banks in the world, offering secure storage solutions for digital assets. Its Fidelity Wise Origin Bitcoin Trust aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

Valkyrie Bitcoin Fund (BRRR): This is one of the fastest-growing digital asset platforms in North America, offering trading, custody, and advisory services for digital assets. Its Valkyrie Bitcoin Fund aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

Grayscale Bitcoin Trust (GBTC): This is one of the largest and most popular digital asset platforms in North America, offering trading, custody, and advisory services for digital assets. Its Grayscale Bitcoin Trust aims to provide investors with exposure to bitcoin through an investment contract that holds physical bitcoins on behalf of investors.

Hashdex Bitcoin ETF (DEFI): This is one of the newest entrants in the crypto space, offering innovative solutions for decentralized finance. Its Hashdex Bitcoin ETF aims to provide investors with exposure to bitcoin through an investment

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.