NEW DELHI (CoinChapter.com) — Bitcoin spot ETF is finally here as the US Securities and Exchange Commission (SEC) finally bent to public demand. The approval would bring wider access to the original cryptocurrency, dramatically increasing BTC’s chances of starting a bull run.
The approval comes after years of struggle as spot Exchange Traded Fund (ETF) proponents faced numerous delays and outright rejections from the regulatory body.
Trading for the nearly a dozen spot ETFs will begin on Jan. 11, with the investment products debuting on the NYSE, Cboe Global Markets, and Nasdaq.
The Bitcoin spot ETF offers investors direct exposure to BTC price, unlike BTC Futures ETF, which provides exposure to the prices of Bitcoin futures contracts.
The Courts Made Me Do It, Says Gensler
In his statement on the approval, SEC chair Gary Gensler highlighted the commission’s loss in court in the Grayscale lawsuit as one of the reasons behind the BTC spot ETF approval.
The court vacated the Grayscale Order and remanded the matter to the Commission. Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.
Gary Gensler said in his statement
In 2023, the U.S. Court of Appeals for the District of Columbia ruled that the SEC didn’t adequately justify its disapproval of Grayscale’s ETP proposal. Gensler stated that the SEC evaluates filings based on their alignment with the Exchange Act and investor protection.
Furthermore, the SEC chair stated that the regulator had no bias against any specific asset or firm. However, Gensler was firm that the approval was specific for Bitcoin ETFs and did not extend to other crypto assets.
Additionally, the approval does not signal a change in the SEC‘s stance on crypto securities, Gensler emphasized. Moreover, the SEC chief reminded everyone that the BTC spot ETF approval did not signal any change in the SEC’s views on crypto assets.
Gensler added that standard rules and conduct will apply to the sales of the approved BTC spot ETFs. The regulator warned users to remain “cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”
Interestingly, Gensler was one of the votes in favor of approving Bitcoin spot ETFs, despite the salty statement. Who knew!!
Pierce Celebrates End Of Decade-Long Dance For BTC Spot ETF Approval
Pro-crypto SEC commissioner Hester Pierce also released a statement celebrating the end of a decade-long “unnecessary, but consequential, saga.”
Pierce was critical of the SEC in her statement, highlighting that ETPs were significant innovations that provided investors with exposure to various assets, including bitcoins. Furthermore, the commissioner expressed her perplexity about the SEC’s consistent denial of Bitcoin spot ETFs over the years.
Pierce also stated that Bitcoin-based products were available under other regulatory regimes and foreign jurisdictions, while the SEC’s refusal forced investors to choose less efficient methods of Bitcoin investment.
The SEC commissioner also chided the SEC for wasting a decade of opportunity to do its job. Pierce stated that if the SEC had applied the standards it uses for other commodity-based ETPs, Bitcoin spot ETFs would have received approval years ago, hinting at dual standards in the SEC’s decision-making.
Even now our approval comes only begrudgingly, as demonstrated by our continued insistence that these products satisfy a correlation test we have not demanded of prior commodity-based ETPs. […] Today’s order does not undo the many harms created by the disparate treatment of spot bitcoin products
Hester Pierce said in her statement
The SEC’s negative stance hurt its reputation and investor’s trust in the regulatory body, said the lawmaker. Furthermore, the SEC’s inconsistent approach to spot bitcoin ETFs led to confusion about its role and regulatory procedures.
Bitcoin prices celebrated the approval, spiking 3.3% to a daily high near $47,160
