US SEC Grants Official Approval for a Spot Bitcoin ETF

In a groundbreaking move for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has granted official approval for a Spot Bitcoin (BTC) Exchange Traded Fund (ETF). This decision marks a significant milestone in the evolving regulatory landscape surrounding digital assets.

SEC Approves 11 Spot Bitcoin ETFs

The SEC’s approval of a spot Bitcoin ETF comes after a prolonged period of scrutiny and deliberation. The regulatory body has been cautious in embracing cryptocurrency-related financial products, primarily due to concerns about market manipulation, fraud, and investor protection. 

As per the reports, the regulator approved the 19b-4 applications from prominent entities like VanEck (HODL), Fidelity Investments (FBTC), Valkyrie (BRRR), Grayscale Investments ($GBTC), WisdomTree (BTCW), Invesco Galaxy (BTCO), BlackRock Inc (IBIT), Bitwise (BITB), Hashdex (DEFI), ARK 21shares (ARKB), and Franklin Templeton (EZBC).  

However, the crypto community is waiting for the exact time the ETF will begin trading. The SEC approval of a spot BTC ETF has impacted the price of Bitcoin. The cryptocurrency ticked up to $47,000 after dropping from $48,000 to $45,000, following the false news by a hacker on SEC’s X account that spot BTC ETFs had been approved.

Impact of Spot Bitcoin ETFs Approval

Interestingly, the approval signals a growing acceptance and recognition of the legitimacy of digital assets in mainstream financial markets. A Spot Bitcoin ETF allows investors to gain exposure to the actual cryptocurrency without holding the digital asset directly. Unlike futures-based ETFs, which derive value from contracts, a spot Bitcoin ETF holds physical Bitcoin.

Institutional investors, who have been cautiously exploring cryptocurrency investments, may find this ETF structure more appealing due to its direct ownership of physical Bitcoin. This development could lead to an influx of institutional capital into the cryptocurrency market, further legitimizing and mainstreaming digital assets. Moreover, the SEC’s approval could pave the way for similar products tied to other cryptocurrencies.

Spot BTC ETF Issuers Announces Fees

Some issuers announced the fees they intend to charge for their respective Bitcoin ETFs. BlackRock, the largest asset manager in the world, mentioned that it will charge 0.2% fees until its fund reaches $5 billion in assets. Similarly, Bitwise announced a 0,24% charge, while Ark 21Shares and VanEck will charge 0.25%.

Meanwhile, Ark 21Shares intends to waive all charges for the first six months or until its product reaches $1 billion in assets under management (AUM). However, Grayscale Bitcoin ETF product fee is the highest, with a 1.5% rate on each of its forthcoming investors.