The SEC approves 11 Bitcoin Spot ETFs

Bitcoin is迎来历史性时刻。The SEC( announced on January 11 that it has approved the first batch of Bitcoin spot ETFs) to be listed in the United States. This decision is seen as an important watershed between crypto finance and traditional finance, making it easier for ordinary investors to access Bitcoin.

The SEC has approved applications from 11 companies including BlackRock, Ark Investments, 21Shares, Fidelity, Invesco, and VanEck. Some products are expected to begin trading as early as January 12. SEC Chairman Gary Gensler emphasized that this approval is limited to ETFs that hold Bitcoin, a non-security commodity, and does not imply any change in the SEC's stance on other crypto assets or market participants.

Industry experts expect that Bitcoin ETF may attract a large influx of funds in the short term. Bloomberg analysts believe that BlackRock may inject $2 billion in assets on the first day, with all ETFs potentially raising up to $4 billion on their first day, and reaching $50 billion within two years. Standard Chartered analysts predict that this year's ETF may attract $50 billion to $100 billion in funds, potentially driving the price of Bitcoin up to $100,000.

Various applicant institutions are engaged in fierce competition for market share, continuously lowering trading fees. BlackRock iShares had a fee of 0.12% over the past 12 months; Bitwise and Ark/21Shares had a fee of 0 for the past 6 months; Fidelity will have a fee of 0 until July 31, 2024. Grayscale's fees, on the other hand, are relatively high at 1.5%.

The SEC has previously rejected Bitcoin ETF applications multiple times, citing concerns over their susceptibility to manipulation. This approval marks a significant shift in regulatory attitude, partly due to last year's court ruling that the SEC's reasons for rejecting Grayscale's application were insufficient. Gensler stated that, based on the court ruling, approving these products is the "most sustainable way forward."

For investors, Bitcoin ETF will provide more protection. The SEC requires issuers to conduct comprehensive, fair, and truthful disclosure of information. These products will be listed and traded on regulated exchanges, subject to existing rules and standards of conduct. However, Gensler emphasized that the SEC has not approved or endorsed Bitcoin itself, and investors should remain cautious about the associated risks.