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Bitcoin: The SEC has finally approved Spot ETFs

Thu 11 Jan 2024 ▪ 4 min of reading ▪ by Evans S.
Getting informed Event

A major announcement has just hit the markets: the SEC has officially approved Spot ETFs for Bitcoin. This decision, long awaited by investors, marks a turning point in the history of BTC. However, despite expectations, the impact of this news on the market has not been the anticipated tidal wave.

Bitcoin ETF

A revolution in the world of digital finance

The approval of Bitcoin Spot ETFs is no small matter. Major players like VanEck, Fidelity, and BlackRock, to name just a few, are now at the forefront, ready to offer unprecedented investment opportunities.

The SEC, under the direction of Jay Clayton since 2018, had previously rejected more than 20 proposals for Bitcoin ETFs.

However, a change of circumstances occurred following a decision by the United States Court of Appeals for the District of Columbia. In fact, the court ruled that the SEC had not sufficiently justified its refusal to list and market the ETF proposed by Grayscale, leading to a reevaluation by the Commission.

Bitcoin Spot ETFs promise to be a game-changer for investors. They offer a more accessible alternative to invest in bitcoin, without the hassle associated with managing wallets and security concerns.

For both the small saver and the large investor, this is a simplified way of positioning on bitcoin, with the ease and familiarity of traditional financial products.

The SEC’s blessing is not just an administrative formality. In reality, it symbolizes the recognition of bitcoin as a financial asset in its own right, subject to the same rules and protections as other financial instruments. It’s a giant leap towards the democratization and regulation of cryptocurrency.

A less spectacular effect on the bitcoin price than expected

The market had already accounted for this SEC approval in the bitcoin prices, which had been rising steadily for weeks. As is often the case in the financial world, it is the anticipation of the news, rather than the news itself, that has the greatest effect.

The SEC’s announcement and the officials’ statements did not cause the expected upheaval in bitcoin. For seasoned traders, this news was just a milestone on bitcoin’s long road, not a catalyst for major change. But curiously, it is among the altcoins where we see stratospheric increases.

This market behavior suggests a certain maturity of bitcoin. Investors now seem more informed, more cautious, and less inclined to react impulsively to announcements, no matter how significant they may be.

What’s next? Towards an uncertain but promising future for bitcoin

The approval of Spot ETFs opens new perspectives for bitcoin. Will we see a deeper integration of crypto into the traditional financial system? This could well be the case, and the implications could be vast, touching everything from regulation to financial innovation.

But the chairman of the SEC reminds us it is crucial to note that this action by the Commission is limited to ETFs that hold a single non-financial product, bitcoin. It should in no way be interpreted as the commission opening up to approve listing standards for crypto-assets considered to be securities.

Indeed, challenges remain. The volatility of bitcoin, unresolved regulatory issues, and the still limited understanding of the underlying technology by the general public are all potential brakes on progress.

The future of bitcoin, with or without Spot ETFs, remains uncertain but undeniably fascinating. The possibilities are vast, and the risks, very real. Have a look at the forecasts for 2024.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.