Categories: Blockchain Investments
Topics: Bitcoin

The Historic SEC Approval of Spot Bitcoin ETFs

In a recent twist of events, the Securities and Exchange Commission's (SEC) Twitter/X account was compromised, and a fake post was made showing the approval of various Bitcoin spot ETFs.  This incident cast a shadow over X's safety team. Despite the initial blame, a statement from the team clarified that the compromise was not due to a breach of X’s systems, but rather an unidentified individual gaining control over a phone number (sim swap) associated with the @SECGov account via a third party. 

The incident brought to light the absence of two-factor authentication on the account and sparked a wave of criticism aimed, somewhat misguidedly, at Elon Musk and X.

The SEC's Chair, Gary Gensler, was quick to clear Musk's name and confirm the earlier allegations as false. He also clarified that the SEC had not approved the listing and trading of spot Bitcoin exchange-traded products, contrary to the information presented in the unauthorized tweet. 

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

This incident, while concerning, did not halt the ongoing progress in the crypto world. Ethereum saw gains, and Bitcoin, despite a temporary dip, was back on the rise.

It certainly did not instill confidence that the agency in charge of protecting consumers and regulating our financial markets didn’t even secure their accounts with two-factor authentication. In fact, it only confirms what I’ve been saying for years – that the SEC under Gensler is a hostile and ineffective organization that is doing little more than driving growth and innovation away from the U.S.

But still, given the SEC’s recent failures in court and pressure from Blackrock, the ETF approval was imminent. 

United States SEC Approves Multiple Spot Bitcoin ETFs

After this snafu, the very next day the SEC approved multiple spot Bitcoin ETFs, marking a historic moment for the cryptocurrency world. The ETFs were greenlit for listing on all registered national exchanges in the U.S., including the Nasdaq, NYSE, and CBOE.

Among the approved ETFs are iShares Bitcoin Trust (NASDAQ: IBIT), VanEck Bitcoin Trust (CBOE: HODL), Franklin Bitcoin ETF (CBOE: EZBC), Fidelity Wise Origin Bitcoin Trust (CBOE: FBTC), Valkyrie Bitcoin Fund (NASDAQ: BRRR), WisdomTree Bitcoin Fund (CBOE: BTCW), Invesco Galaxy Bitcoin Fund (CBOE: BTCO), Bitwise Bitcoin ETF (NYSE: BITB), Grayscale Bitcoin Trust (NYSE: GBTC), and ARK 21Shares Bitcoin ETF (CBOE: ARKB).

The approval filing, which was briefly inaccessible due to high website traffic (more SEC incompetence), noted that each proposal sought to list and trade shares of a Trust that would hold spot Bitcoin, in whole or in part. The order approved the proposals on an accelerated basis. Several firms, including VanEck, signaled their readiness to begin trading as early as the following day.

Despite the volatility and price swings witnessed in BTC as a result of the SEC approval, the industry is looking ahead to the next significant milestone - the Bitcoin halving in April. Various entities, from Wall Street stalwarts to crypto-natives, project significant price surges and considerable market inflows in the coming year.

The spot Bitcoin ETF approval marks a turning point in the cryptocurrency industry. The decision culminates a decade-long pursuit by various asset managers, including ARK Investments, Grayscale, and Fidelity, who had previously faced rejections over concerns of potential market manipulation.

The assets of these ETFs will consist of physical Bitcoin acquired from various cryptocurrency exchanges and held through custodians such as Coinbase Global.

The spot Bitcoin ETFs will provide investors with exposure to the price of Bitcoin without the complexities and risks associated with owning Bitcoin directly. This development is expected to significantly enhance the accessibility of Bitcoin for institutional investors, who are sometimes prohibited from directly investing in alternative assets.

The SEC's Stamp of Approval for Bitcoin ETFs: A Milestone for Cryptocurrency

The U.S. Securities and Exchange Commission's approval of eleven spot Bitcoin Exchange-Traded Funds (ETFs) marks a significant milestone for cryptocurrency, according to Alesia Haas, CFO of Coinbase (NASDAQ: COIN). She explains that Coinbase will act as a "Qualified Custodian", serving as the primary Bitcoin custodian for many of the newly approved ETFs – most notably Blackrock.

Coinbase is the primary exchange we utilize at Crypto Cycle and the one I’ve promoted especially during and after the FTX/Alameda collapse. 

The approval is expected to unlock diverse pools of new investors, potentially bringing in trillions of fresh capital that previously could not access crypto assets. The move broadens the reach of this asset class and signifies a great stride in the journey towards broader crypto acceptance. Haas reassures investors of Coinbase's robust cybersecurity precautions, highlighting the firm's extensive track record of securely storing assets for both retail and institutional clientele.

I’ve been saying this was an inevitability ever since Blackrock filed for the ETF in June and I’ve been preparing my readers to profit. Months ago I outlined three bullish catalysts that would ignite the cryptocurrency market. All of them are now happening in 2024.

Find out what steps I’m taking to turn $50,000 into $1 million during this crypto bull market. 

Chris Curl
Editor, Daily Profit Cycle