The Securities and Exchange Commission (SEC) has approved the launch of the first spot bitcoin exchange-traded funds (ETFs) in the United States.
On January 10, 2024, the SEC gave the green light to 11 companies to list spot bitcoin ETFs, just one day after a false announcement caused market turmoil.
The approvals allow companies including Ark 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton to launch spot bitcoin ETFs that directly track the price of bitcoin.
Additionally, investors will be able to buy shares in the ETFs as they would a stock, without needing to directly purchase or custody bitcoin.
The move opens up bitcoin exposure to mainstream investors for the first time via a regulated investment product. Analysts estimate inflows into spot bitcoin ETFs could reach up to $14 billion in the first year.
Also Read: Musk Mocks SEC After Hack Throws Crypto Market into Chaos
