US SEC approves 11 Bitcoin spot ETFs, but while some celebrate — others have condemned the move

The US Securities and Exchange Commission (SEC) has finally approved 11 Bitcoin spot ETFs in a landmark judgment. In doing so, the US securities regulator paved the way for mass adoption of digital assets.

US SEC finally approves Bitcoin ETFs

The crypto industry has been trying to get a spot Bitcoin ETF approved for over a decade now, starting back in 2013 when the Winklevoss twins first filed an application for the product. Between then and now, numerous companies have tried to get the SEC to approve an ETF, only to be rejected for various reasons. Over time, some have started to speculate that the SEC is willing to find any reason, no matter how small, to prevent the crypto industry from achieving this step.

Now, however, the regulator has run out of excuses and reasons, and even after presenting applicants with new requirements mere days before the deadline for filing their applications (December 28, 2023), they still managed to amend the applications and file them in time. As a result, the SEC has approved 11 Bitcoin spot ETFs, which will start trading at market opening Thursday, with BlackRock leading the way.

Apart from BlackRock and its iShares Bitcoin Trust, Fidelity and Invesco have also gained the green light to launch their ETFs, and so did the relative newcomers, such as ARK Invest and Grayscale.

Grayscale’s has seen a particular clash with the regulator in 2023, as the company sued the SEC, and even won that lawsuit in August. The lawsuit came after the SEC denied an application to convert the Grayscale Bitcoin Trust into an ETF. The court did not order the SEC to approve the application, but it did order it to review it again, which was also a victory for the crypto sector.

With pressure on the regulator coming from all sides, the SEC finally approved the new product.

While some praise the move, others criticize it

Only days before the SEC announced the approval, an unknown entity hacked its account on X, posting a fake announcement that Bitcoin ETFs were approved. The SEC then faced scrutiny from the public for its poor security, as it turned out that it did not have two-factor authentication (2FA) activated, while at the same time it claimed that the crypto industry lacks security.

Fortunately, the regulator decided to approve the filings anyway, thus marking a massive new milestone for the crypto industry.

Commenting on the move, Liminal Custody Solutions’ SVP for technology, Dhruvil Shah, stated that the digital asset industry is witnessing its defining moment. “I think this is a watershed moment for the crypto industry as a regulated bitcoin financial product in one of the largest economies of the world will create a huge influx of capital into the crypto market. The approval of bitcoin spot ETF will prove highly beneficial for the growth of sectors like blockchain, decentralised finance, BTC ordinals, and digital asset custody, as the demand for such services will witness explosive growth.”

However, not everyone seems to be excited about the move, as some have even gone as far as to condemn it. One example is the president of Better Markets, Dennis Kalleher, who called the ruling a “historic mistake that will not only unleash crypto predators on tens of millions of investors and retirees but will also likely undermine financial stability.”