Last Wednesday night, Thai time The United States Securities and Exchange Commission approved a rule change to create Bitcoin exchange-traded funds in the United States, providing long-awaited good news from investors around the world that makes it more accessible. Cryptocurrency just got easier
This news has led companies such as BlackRock, Fidelity, and Grayscale to attempt to create bitcoin (BTC) ETFs, in recent days lowering the fees they charge to investors. This is considered a fierce competition for investors. These are Spot ETFs, which means they hold Bitcoin itself, versus approved Bitcoin Futures ETFs. which have contracts linked to BTC
This comes after several delays and refusals from the SEC to approve bitcoin ETFs over the years. Additionally, a few months after the agency lost its court case, the D.C. Circuit Court of Appeals in August ruled that the SEC acted “arbitrarily and capriciously” in deciding to deny Grayscale’s attempt to convert Grayscale Bitcoin. Trust (GBTC) is valued at approximately $26 billion as an ETF.
"U.S. Court of Appeals District of Columbia It held that the Commission failed to adequately explain its reasons for disapproving of Grayscale's proposed ETP listing and trading (Grayscale Order). Therefore, the Court vacated the Grayscale Order and remanded the matter to the Commission based on the circumstances. These are more fully discussed in the approval order. The most sustainable path forward is to approve the listing and trading of these bitcoin ETP shares.” According to a statement from SEC Chairman Gary Gensler, he pointed to the loss of the court in 2023 as part of the force. Push to approve dozens of filings on Wednesday
Supporters of BitcoinETFs argue that it is a regulated, Bitcoin-focused exchange that will allow institutions and retail traders to gain exposure to Bitcoin price movements without having to set up a wallet. money or invest directly in digital assets
“This approval may prove to be a milestone in the adoption of cryptocurrencies by mainstream finance because the ETF structure will enable institutions and financial advisers to use a familiar and proven method. Also, control the risk of purchasing Bitcoin.
