It’s been a long-awaited moment for spot bitcoin ETF filers as the U.S. Securities and Exchange Commission has finally approved all 11 standing applications from issuers. This approval marks a significant step forward for the cryptocurrency market.
Key Takeaway
The approval of spot bitcoin ETF applications by the U.S. Securities and Exchange Commission is a significant milestone for the cryptocurrency market, signaling a shift towards the normalization of crypto assets in the investment landscape.
Grayscale Investments and Other Approved Issuers
Grayscale Investments, a prominent digital asset investment firm, was among the 11 firms that filed for a bitcoin spot ETF. The company is best known for its Grayscale Bitcoin Trust (GBTC), which has now been converted, or “uplisted,” into its new bitcoin spot ETF product. Additionally, other notable issuers include BlackRock’s iShares Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin ETF, Valkyrie Bitcoin Fund, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF.
Spot Bitcoin ETFs and Their Significance
Previously, the only crypto-focused ETFs in the U.S. were tied to futures contracts for bitcoin and ethereum. The approval of spot-focused crypto ETFs is expected to allow investors and institutions to invest in crypto assets through a regulated wrapper. When an investor buys shares in a spot-based ETF, they’re essentially buying shares of the fund that owns the asset, providing investors with a regulated layer of protection.
The Impact of the D.C. Circuit Court of Appeals’ Ruling
According to Michael Sonnenshein, CEO of Grayscale Investments, the most critical milestone that led to the approval of these bitcoin spot ETFs was the D.C. Circuit Court of Appeals’ ruling in favor of Grayscale against the U.S. Securities and Exchange Commission in the case of a bitcoin spot ETF in the Summer of 2023. This decision, which vacated the SEC’s previous denial order of “uplifting” GBTC into an ETF, was a significant validation for the industry as a whole and acted as a catalyst that broke the logjam.
