Categories: U.S. Regulation

BlackRock and Grayscale Among 11 Firms Approved For Spot Bitcoin ETFs in Long-Awaited SEC Decision

After a setback on Tuesday, the Securities and Exchange Commission (SEC) greenlit spot Bitcoin ETFs on Wednesday. The approval covers applications from 11 issuers, including BlackRock and Grayscale.

This marks the end of a process initiated in 2013 by the Winklevoss twins, whose initial attempt at a Bitcoin ETF was unsuccessful. Trading for these spot Bitcoin ETFs is scheduled to commence on Thursday. This type of ETF, tracking the current cryptocy price, has been a longstanding aspiration in the crypto industry, aiming to attract investment from wealth managers and traders who might otherwise avoid digital assets.

Despite past rejections by the SEC, citing market immaturity and manipulation risks, the tide turned after Grayscale’s lawsuit in 2022. BlackRock’s application in June 2023 signaled confidence in eventual approval. With Grayscale’s legal victory in August, the path was set. Notable approved issuers, besides BlackRock, include Fidelity, Franklin Templeton, and ARK by Cathie Wood.

The focus now shifts to observing capital inflows into this newly opened market and identifying which issuers gain the most market share. The next development to watch will be how much capital flows into the newly opened market.

Terron Gold

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