1 of 2 | Bitcoin’s exchange-traded funds won approval Wednesday from the Securities and Exchange Commission, clearing the way for more Americans to invest as early as Thursday. File Photo by John Angelillo/UPI |
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Jan. 10 (UPI) -- Bitcoin's exchange-traded funds won approval Wednesday from the Securities and Exchange Commission, clearing the way for more Americans to invest as early as Thursday.
The SEC's approval, allowing 11 investment companies to offer "spot bitcoin" ETFs, comes as its Jan. 10 decision deadline was about to expire. It also comes one day after the SEC's account was compromised, leading to an unauthorized post that the agency had already approved the listing and trading of ETFs on Tuesday.
The 11 firms to offer spot bitcoin ETFs are listed as Bitwise, Grayscale, Hashed, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity and Franklin.
"After careful review, the commission finds that the proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange," according to the SEC approval order document.
Bitcoin's price topped $47,500 after the decision was announced.
The SEC's approval of spot bitcoin ETFs follows years of delays and comes just months after the agency suffered a court loss in its rejection of Grayscale's move to convert $26 billion of Grayscale Bitcoin Trust into spot ETF.
"I have often said that the commission acts within the law and how the courts interpret the law," SEC Chair Gary Gensler wrote in a statement Wednesday.
"The U.S. Court of Appeals for the District of Columbia held that the commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale's proposed ETP. The court therefore vacated the Grayscale Order and remanded the matter to the commission," Gensler said.
"Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares."
Despite the SEC's approval, Gensler also issued a warning that the commission does not endorse bitcoin, which he described as "speculative" and "volatile" and tied to "illicit activity including ransomware, money laundering, sanction evasion and terrorist financing."
"While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad of risks associated with bitcoin and products whose value is tied to crypto," Gensler said.
