SEC Approves 11 Bitcoin ETFs: BlackRock, Grayscale, & ARK Among Them

Summary

  • The U.S. Securities and Exchange Commission (SEC) has approved 11 spot bitcoin ETFs, including offerings from BlackRock, Grayscale, and ARK 21Shares.
  • Notably, Grayscale’s existing bitcoin trust will be turned into the world’s largest bitcoin ETF, boasting over $28.6 billion in assets under management.
  • The approvals come despite the SEC previously dismissing all spot bitcoin ETFs, citing investor protection issues. However, SEC Chair Gary Gensler clarifies that these approvals do not equate to an endorsement of bitcoin.
  • The ProShares Bitcoin Strategy ETF, the first bitcoin futures ETF approved in 2021, amassed $1 billion within its first days of operation.

Bitcoin ETFs Receive SEC Approval

The U.S. Securities and Exchange Commission (SEC) has greenlit 11 spot bitcoin ETFs this week. These include BlackRock’s iShares Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF, among others. This marks a significant shift after a decade-long ping-pong match with the digital asset industry.

Initial Impact on Trading

On Thursday, trading was primarily dominated by Grayscale, BlackRock, and Fidelity, according to the data provided by LSEG. These new products introduce a pivotal moment for the crypto industry, which will determine whether digital assets can broaden their acceptance as an investment amid their high-risk perception by many. Market observers are keeping a close eye on inflows during the first few trading days.

Comparing to Previous Success

The ProShares Bitcoin Strategy ETF, which was the first bitcoin futures ETF to receive SEC approval in 2021, garnered $1 billion in assets in its first few trading days. “Replicating BITO’s first-week performance would indeed indicate remarkable success, particularly in light of the market’s current state,” stated Anthony Rousseau, the head of brokerage solutions at TradeStation.

New Largest Bitcoin ETF

On Thursday, Grayscale was given the green light to transform its existing bitcoin trust into an ETF. This changes happened overnight, resulting in the largest bitcoin ETF in the world, with assets under management exceeding $28.6 billion. However, the product saw $95 million in outflows on its first day, according to an inside source.

SEC’s Perspective

Previously, the SEC rejected all proposals for spot bitcoin ETFs, raising concerns about investor protection. Although these recent approvals might seem like a significant pivot, SEC Chair Gary Gensler emphasized that they should not be interpreted as a bitcoin endorsement, describing it as a “speculative, volatile asset.”

This decision will likely affect the landscape of forex trading, potentially leading to increased market volatility and presenting new opportunities for profit in trading of crypto-related assets.

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