Breaking: SEC Gives Approval to Spot Bitcoin ETF, Opens Door for Trading

The SEC has accelerated the approval process of 11 spot Bitcoin Exchange-Traded Funds (ETFs). This development initially indicated in a now-inaccessible document on the SEC’s website, marks a significant step in accepting and regulating cryptocurrency assets.

🚨BREAKING🚨

Bitcoin ETFs Likely Approved by the SEC

It certainly looks like the #Bitcoin ETF Approval order had hit the SEC website but the link is no longer working. That said, this document looks accurate to me.https://t.co/NhJueWNPJ0 pic.twitter.com/W0ipnlg3j1

— James Seyffart (@JSeyff) January 10, 2024

A Surge in Investor Interest Anticipated

The trading world is bracing for the impact of this decision, as substantial inflows of investment are anticipated. Valkyrie Investments projects an inflow of $200 million to $400 million into its ETF alone. Collectively, the market might witness $4 to $5 billion in inflows within the initial weeks. 

VanEck forecasts a $1 billion surge in the first few days, growing to $2.4 billion in a quarter. Galaxy Digital expects a $14 billion influx in the first year, while Bitwise projects the market for spot bitcoin ETFs to balloon to around $72 billion in five years.

Bitcoin ETF Preparations: Issuers Line Up Seed Funding

In readiness for this new phase, issuers have lined up seed funding. VanEck leads with a $72.5 million investment in its ETF. Bitwise, with a $500,000 seed, has revised its S-1 form, and Pantera Capital expressed interest in a substantial $200 million investment. BlackRock’s proposed ETF is seeded with $10 million. 

This preparatory phase also witnessed a competitive battle over fees. Bitwise set the lowest bar, offering zero fees initially, followed by a 0.2% fee, a reduction from the previous 0.24%. BlackRock proposes a 0.2% fee for the first year or until the fund reaches $5 billion, adjusting to 0.3% thereafter. Fees across other ETFs vary, with some as high as 1.5%.

This decision by the SEC indicates a shift in the regulatory approach towards cryptocurrency. It follows a recent event where the SEC’s Twitter account was compromised, falsely announcing premature approval of bitcoin ETFs. However, the recent official approval reflects the SEC’s evolving stance on digital currencies.

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