Spot Bitcoin ETFs are Approved for the First Time

The US Securities and Exchange Commission (SEC) has made a groundbreaking move by approving the first-ever spot Bitcoin exchange-traded funds (ETFs). On January 10, firms including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton received the green light to list and trade their spot Bitcoin ETFs. This historic decision allows trading to begin on January 11.

These spot Bitcoin ETFs provide investors with a new avenue to gain exposure to Bitcoin's price without directly purchasing the cryptocurrency. Instead, they can buy shares in ETFs holding physical Bitcoin. Samir Kerbage, Chief Information Officer at Hashdex, highlighted this as a monumental day for digital assets, allowing U.S. investors to engage more fully with Bitcoin.

The journey to this approval was arduous, with initial rejections due to concerns over market manipulation and a smaller market size. However, the significantly larger market in 2023 and heightened institutional interest have turned the tide. BlackRock's participation was particularly influential, enhancing the legitimacy of Bitcoin ETFs. With this approval, the approach towards cryptocurrency investment is poised to transform, potentially attracting more institutional investors and affirming Bitcoin's status as a viable investment asset.

Bitcoin's price is testing 47000 which seems possible considering the strong momentum and the bullish trend after the last approval. The next target will be at the 51000 level.