Bitcoin Achieves Historic Breakthrough: US SEC Approves Multiple Bitcoin Spot ETFs

On January 11, Beijing time, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, announced the approval of the first exchange-traded fund (ETF) in the United States that tracks Bitcoin.

The U.S. Securities and Exchange Commission announced that the 19b-4 filings submitted by the New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange have officially taken effect, allowing these markets to offer Bitcoin Spot ETF trading as early as the 12th. The day before the approval, the applying agencies announced a reduction in fees, engaging in fierce competition to attract investor funds.

This long-awaited initiative will give ordinary investors the opportunity to access Bitcoin. Analysts predict that all these ETFs could raise up to $4 billion on their first trading day and gather $50 billion in funds within two years.

According to the notice from the official website of the U.S. Securities and Exchange Commission, applications from 11 companies including BlackRock, Ark Investments, 21Shares, Fidelity, Invesco, and VanEck have been approved. Some products are expected to start trading as early as Thursday.

Gensler emphasized that this approval is limited to ETPs holding Bitcoin, a non-security commodity, and does not indicate a change in the Commission's stance on other crypto assets. SEC Commissioner Hester Peirce stated that this is a moment worth celebrating, as American investors have the right to express their views on Bitcoin by buying and selling Spot Bitcoin ETPs.

However, Commissioner Caroline Crenshaw opposed the approval, believing that the Bitcoin spot market is not safe and cannot avoid fraud or manipulation.

The launch of these products is seen as a game changer for Bitcoin, allowing institutional and retail investors to access Bitcoin without the need to hold it directly, providing a significant boost to the crypto industry. Analysts predict that ETFs alone could attract between $50 billion to $100 billion in funds this year, potentially pushing the price of Bitcoin up to $100,000.

As a result of this news, the price of Bitcoin rose by 1% to $46,515. The approval marks a significant shift in the attitude of the U.S. Securities and Exchange Commission, which had previously rejected Bitcoin ETF applications.

In terms of fees, various institutions have engaged in fierce competition. Several firms, including BlackRock iShares, Bitwise, and Ark/21Shares, initially offered zero or low-fee strategies to attract investors. The level of fees is considered one of the key factors determining the popularity of ETFs.

Gensler pointed out in a statement that approving these products is "the most sustainable way forward," but emphasized that the committee does not recognize Bitcoin due to its risks and volatility. He also stated that most crypto assets are investment contracts and therefore subject to federal securities laws.

The approval of the Bitcoin ETF will bring certain protections for investors, including comprehensive, fair, and truthful disclosure requirements, as well as trading on regulated national securities exchanges. At the same time, existing rules and standards of conduct will also apply to the buying and selling of these ETFs.

Nevertheless, Gensler reminds investors that Bitcoin remains a speculative and volatile asset, and is also used for illegal activities. He calls on investors to remain cautious about the various risks associated with Bitcoin and products linked to its value and cryptocurrencies.