Despite previous confusion with erroneous announcements, the SEC has definitively approved a spot Bitcoin ETF, a significant milestone for cryptocurrency. Investors initially doubted the approval due to the SEC’s history of removing official announcements from their website, but this time the spot Bitcoin ETF has been confirmed without question.
When BlackRock applied for a spot Bitcoin ETF in June, expectations for approval increased. The world’s largest asset manager, with only one ETF previously denied, has now seemingly convinced the SEC along with its partners, marking a victorious moment for the GBTC.
SEC Chair Gary Gensler hinted at reluctance in his statement, contrasting Bitcoin’s speculative nature with other ETFs backed by precious metals that have industrial uses and are not associated with cybercrime, terrorism financing, or sanctions evasion.
The SEC may face scrutiny after a hacking incident led to the removal of the official announcement from their website, causing temporary panic. Gensler may have to address this issue before Congress in the coming days or weeks.
The next 48 hours are crucial as they will reveal the volume generated by ETFs. Although Bitcoin’s price is currently stable, the anticipated influx from institutional and accredited investors could spark a rapid increase in value. Bloomberg predicts a $4 billion entry into spot Bitcoin ETFs on the first day of trading, with $2 billion potentially coming directly from BlackRock.