The US SEC approves 11 Bitcoin Spot ETFs, ushering in a new era of encryption finance

Bitcoin welcomes a historic moment. The U.S. Securities and Exchange Commission has officially approved the listing applications for 11 Bitcoin Spot ETFs, marking a significant integration of encryption currency and traditional finance.

The SEC of the United States announced that the 19b-4 filings submitted by the New York Stock Exchange, NASDAQ, and the Chicago Board Options Exchange have officially taken effect. These exchanges can start offering Bitcoin Spot ETF trading as early as January 12. The day before the approval, the applicants announced cuts in fees, signaling that an intense competition for investors' funds is about to unfold.

Industry analysts expect that BlackRock may inject $2 billion in assets on the first trading day, breaking the ETF's first-day flow record. All approved ETFs could raise up to $4 billion in funding on their first trading day, with a projected scale of $50 billion within two years.

SEC Chairman Gensler stated that this approval is limited to ETPs holding non-security commodity Bitcoin, and does not imply that the SEC is willing to approve the listing of other encryption asset securities. He emphasized that this decision does not represent any view by the SEC on the legal status of other encryption assets.

SEC Commissioner Hester Peirce believes that the logic behind the previous rejection of the Bitcoin Spot ETF application is "puzzling." She stated that this is a moment worth celebrating, as American investors now have the right to express their views on Bitcoin through ETFs.

However, SEC Commissioner Caroline Crenshaw opposed the approval decision. She believes that the Bitcoin spot market lacks regulation and cannot avoid fraud and manipulation.

Analysts expect that the approval of the Bitcoin ETF will bring significant momentum to the encryption industry. Standard Chartered analysts stated that the ETF could attract $50 billion to $100 billion in funds this year, potentially pushing the price of Bitcoin up to $100,000.

As a result of this news, the Bitcoin price has risen slightly by 1% to $46,515. Some analysts point out that the market may have already digested the positive news of approval, as Bitcoin has risen over 70% in the past few months.

This approval marks a significant shift in the SEC's stance. Previously, the SEC had repeatedly rejected Bitcoin ETF applications, citing concerns over their susceptibility to manipulation. After a court ruled last year that the SEC's rejection of Grayscale's application was erroneous, the SEC ultimately approved the Bitcoin ETF.

ETF trading fees have become a focal point of concern for potential investors. At the last minute, 11 applying institutions have lowered their fees to enhance competitiveness. Among them, BlackRock iShares had a fee of 0.12% for the first 12 months, which was then raised to 0.25%. Bitwise and Ark/21Shares had a fee of 0 for the first 6 months, which was then raised to 0.2% and 0.21%, respectively.

The SEC stated in its announcement that this approval provides certain protections for investors: ETF issuers are required to conduct comprehensive, fair, and truthful information disclosure; these products will be listed and traded on regulated exchanges; existing investor protection rules and conduct standards will also apply to the buying and selling of ETFs.

The SEC emphasized that although it has approved the listing and trading of a Bitcoin ETF, this does not equate to an endorsement of Bitcoin itself. Investors still need to be cautious about the various risks associated with Bitcoin and related products.