SEC Finally Approves Bitcoin Spot ETFs
Finally the day and time has arrives for SEC announce their approval of multiple applications for spot Bitcoin ETFs. The topic of whether SEC would approve Bitcoin spot ETF applications at the beginning of the new year or how soon it could happen has been one of the main topics in crypto and finance for months now. SEC's overall attitude and actions towards crypto have not been super friendly. The agency had took many active actions to make it difficult for crypto firms and exchanges to operate, not only in the US but also around the world. Many of the litigations SEC brought forward failed, but their actions did continue creating obstacles and confusion in crypto. Bitcoin spot ETF in the US was unlikely to happen in many people's mind, until BlackRock showed interest. After BlackRock announced their interest in bitcoin and their plans to create an bitcoin spot ETF, opinions shifted drastically. Because BlackRock is a giant in money management, investment and finance world, and because BlackRock has impressive record of receiving approvals from SEC, the consensus among analyst and opinionated ones was Bitcoin spot ETF would happen sooner than it was expected before BlackRock entered the space.
For months many predicted ETF was definitely going to happen soon. Those who expected the opposite have been in minority. Despite such agreement, or maybe disagreement at times, bitcoin's price didn't really react to the rumor or the news now. Yes, bitcoin's price did well in 2023. But this wasn't anything near to what bitcoin has done in past like in 2021, 2017, and even before. Bitcoin has proven many times in the past that it always breaks its previous all time highs and doesn't take too long to do so either. With bitcoin spot ETF being a huge deal, I have been surprised with how it wasn't able to reach its previous all time high during rumor period, nor has it done after today's SEC announcement. Perhaps, more enthusiasm will come to price action after ETF start trading.
It is debatable wether big money managers and investment firms getting into the space is good for ordinary people or bitcoin. This was inevitable. Sooner or later it was going to happen. I would choose sooner. I am glad the speculation around ETF approvals is over now. This chapter in bitcoin's history is closed, and the new one begins. Time will show actually bitcoin spot ETF will impact bitcoin as a technology, investment instrument, and revolutionary idea. In theory, spot bitcoin ETFs is a great news. Now this opens up the opportunity to participate in bitcoin as investment for many institutions, and even individuals who couldn't do so before. While buying bitcoin in exchanges has been an option for many years now, institutions wouldn't be able to allocate any funds to such investment according to their charter, rules, and laws. Even some individual investors wouldn't want to risk their money and keep them in exchanges or even have self-custody of assets due to many many losses of funds by exchanges and people losing keys to wallets. For such investors bitcoin spot ETFs might be the perfect options they have been waiting for.
Bitcoin is a globally recognized brand. For some of us it is a revolutionary idea to creates perfect incorruptible money and let us reimagine better financial systems, for others it is a magical technology, and for many is a great investment opportunity. Bitcoin has been the best performing asset for years now, it continues to do so. Even those who don't think it has any intrinsic value, they too wouldn't want to miss a chance on such gains. While likes of Chase CEO Jamie Dimon loudly criticizes bitcoin, his bank continues to make plans on how to participate and make money from bitcoin and crypto. It is difficult to believe and trust what SEC says, it is even more difficult to trust or believe banks and their executives. Being dishonest comes to them with ease. Hence, bitcoin - trustless network of money.
SEC has handled the entire process poorly. If I were to grade, I would give them F. While we know from SEC actions in last the couple of years, they haven't been crypto friendly, one thing has been clear for a very long time that SEC did not consider bitcoin to be a security. In my opinion, SEC knew they were ready to approve bitcoin spot ETFs when BlackRock submitted their application. SEC knew they were going to approve spot ETFs when they lost the lawsuit against Grayscale. As a regulatory agency that is tasked to bring more openness and transparency to markets, SEC embraced secrecy. They could have easily introduced clarity months ago without even telling what their final decision was going to be. Simply describing the criteria they are using in decision making, steps they will be taking, and when to expect the final decision. This could have been done easily. Not only they kept building confusion in the last few months around this topic, they failed in properly making the official announcement. There will be movies made about this story. It is as if they were making it easy for writers to come up dramatic moments.
How is that possible for an agency to deals with fraud, crime, corruption not to have their login credential secure for their social media account? I know hackers are very sophisticated nowadays, and manage to pull of hacks in crucial moments. But being hacked because of lack of competence in basics of account security for and agency whose statements move markets is being beyond careless. I am talking about how their X account was accessed by someone unauthorized who has access to the phone number associated with SEC's X account. This hacker or rogue insider was able to publish that SEC officially approves ETFs from SEC's official X account. I admit, it was funny. Movie maker don't omit this moment please. But that also caused liquidations and loss of money for traders. SEC was quick to see this action, removed the announcement, and told everybody what happened. Funny thing is they knew they were planning to announce the following day. Why not just leave the announcement? Sure, tell us that account was hacked. But keep the true news out. Say, we were planning to announce tomorrow, but because of the hack we are doing it now. It's official, bitcoin spot ETFs are approved.
Even the official announcement didn't seem to to as planned. After it was published, it disappeared. Was that due to technical difficulties, many people visiting the website at the same time, or did they just discover a grammatical error or type that had to be fixed. After all this drama, now we all know that bitcoin spot ETFs are approved and trading should start tomorrow. Obviously, we all wonder what will happen, how will it affect the price action. Well, prices go up, prices go down. Bitcoin does its own thing. Usually, bitcoin like to surprise people and do something unexpected. Probably the same will be true tomorrow, next month, and next year.
ETF or no ETF, bitcoin has its own path, its own journey. Bit investors, institutions, or just retail, it doesn't matter. In fact, bitcoin doesn't show favoritism to any. It is an open monetary network, and everybody is welcome to participate. Nothing wrong with banks, money managers, or even governments to participate in the network. They all are encouraged to do so. Nobody is allowed to rig the system to put other participants in disadvantage. Even if they wanted to, protocol wouldn't allow. Will spot ETFs drive more money and recognition for bitcoin. Probably. But that was going to happen regardless. ETFs only offer exposure to bitcoin and may be a good investment. But ETF do not provide all the features bitcoin offers to the investors. Owning the actual bitcoin gives the full features of this money and its network.
Even without ETF approval, 2024 was going to be a great year for bitcoin, at least expected to be. One of the most anticipated events in bitcoin is the halving which should happed mid Spring. If history repeats, bitcoin tends to reach new highs within a year of halving. As bitcoin leads the way, rest of crypto follows, and there may be great opportunities for other decentralized networks to shine as well. Ethereum already makes interesting moves. We have seen other crypto coins eager to reignite the bull market. It is time for Hive to regain its billion dollar market cap, make some noise, and let more people to benefit from the network.
Hopefully, bitcoin spot ETF talk is over now. At least the part the involves SEC. Hopefully, focus will shift to more meaningful things going forward. It is time for SEC to engage in more meaningful activities like creating clear guidelines, and offering solutions, instead of being an obstacle.
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Europe had ETFs for a while already, but who gives a rats ass about Yurope.
I sure don't!
Good for you!
I agree with what you said, ETF or no ETF Bitcoin will make its way. An interesting event will be the next Bitcoin halving
The focus on the broader potential of cryptocurrencies beyond ETFs and the call for regulatory bodies like the SEC to play a constructive role in providing clear guidelines and solutions is a perspective that many in the crypto community share. Here's to a promising 2024 for Bitcoin and the evolving landscape of decentralized networks.
This means more money. And institutional funding on the market. Congratulations to BTC this is good news for adoption.
BTC is officially a Boomercoin now.
I hope the approval brings real benefits in the long run. I am really looking beyond the price action for which many crypto enthusiast are eager. How much closer this approval would bring us to mass adoption is something that should not be ignored. These institutions getting involved should be a useful tool in creating confidence for crypto among their loyal fans. As such, a many could give crypto a try through these institutions.
It will bring real benefits in the short run. In the long run, this pretty much guarantees BTC gets totally co-opted by Globohomo Inc. soon.
Fruitful news. It suddenly changed the entire game. ETFs backed by hedge funds and big business money means. The SEC and government can not deliberately aim to kill crypto because there own citizens hard earned money and pension funds are invested into the system.
This news has been long overdue, 2024 looks like it’s going to be a good year for crypto. Now is the best time to start making plays to rip the benefits of that will be seen in 2025
I think it's good news. I also agree that the clear guidelines needs to be there. It kind of sucks to see them ignore things then crack down on things because people aren't clear on what is legal or not.
Wasnt it a hack?
It was both! A hack one day, then real the next day.
Just watching the market, not big response from BTC and HIVE.
It'll take a while for the Boomers to catch on.
I quiet agree with you, in theory the approval is great but in practice, its unpredictable. Considering the fact that it's an unprecedented event in the financial world I will want to stay positive and believe it will spur the fundamentals and do well for the image and perception of crypto in general which had suffered enormous damage to it's image in recent times leading to lows and high.
The drama behind the scene leading to the approval of the Bitcoin ETF was indeed hilarious and comical and unbecoming of a regulatory body like SEC. All well and good, it just adds to the hype and it can't stop the bull run. Thank you for sharing your informative post, enjoyed reading it.
Haha yes, that must be in it. I'm thinking maybe Paul Giamatti for the role of Gensler
This is the best news I’ve ever heard this year they know that there is no way they can conquer cryptocurrency so the best thing for them to do is to approve it
I’m sure that’s why they did that
Honestly speaking, I know the BlackRock guys are super big, but will this bring a long-term benefit and possibly adoption in the crypto space. I am not bothered about the prices but rather the long-term benefits and adoption in the long run. Thanks for putting up this brilliant article
ETF approval by SEC is the dawn of good things to come for the crypto community. Let's hope it results in some bullish market move.
I enjoyed reading this post. Thank you for sharing that informative message with us
This is very good news for the market and we will see the market after some time market going up more and more.
!WOC
Thank you @geekgirl for the wonderful news about SEC Finally Approves Bitcoin Spot ETFs! This is so awesome! Have a great rest of the week. Barb !BBH !CTP #ctp
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I hope this opens up more opportunities for each one of u, especially with the benefits of Bitcoin spot etfs.
That is really a massive news for the crypto space I must admit
Yaay! Good news for crypto. For a country that is not so crypto friendly such as the US, this is a bold move. Hope this will lead to a bull market soon!
this is indeed good news to us all. i hope bitcoin will keep its momentum!
this news is the appetizer. the main course is the halving this April. i hope hive will reach a new all time high.
I strongly believe this is a massive news for the Crypto space
Wow! That is great milestone for the cryptocurrency world. Now we anticipate the price auction. I hope this approval will strengthen the image of the crypto world.
I see most people expecting Bitcoin to continue to rise. But more often than not, most people do not guess the direction of the cryptocurrency market.
yeah finally a good news
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