The Securities and Exchange Commission (SEC) has approved the first spot bitcoin exchange-traded fund (ETF), paving the way for institutional investors to more easily gain exposure to the cryptocurrency.
The ETF, which is called the ProShares Bitcoin Strategy ETF (BITO), will track the price of bitcoin and will be listed on the New York Stock Exchange. It is expected to start trading on October 19, 2023.
The approval of BITO is a major victory for the crypto industry, which has been lobbying the SEC for years to approve a spot bitcoin ETF. The SEC has been hesitant to approve a spot bitcoin ETF, citing concerns about market manipulation and the lack of a regulated market for bitcoin.
However, the SEC’s approval of BITO suggests that the agency is becoming more comfortable with the idea of a spot bitcoin ETF. This could lead to more institutional investors investing in bitcoin, which could drive the price of the cryptocurrency even higher.
Top crypto executives are confident that the SEC approval of a spot bitcoin ETF is inevitable. Michael Novogratz, CEO of Galaxy Digital, said that he is “bullish” on the approval of a spot bitcoin ETF and that it is “only a matter of time.” Cathie Wood, CEO of Ark Invest, said that she expects the SEC to approve a spot bitcoin ETF in the next few months.
The approval of a spot bitcoin ETF could be a major catalyst for the crypto market. It would make it easier for institutional investors to invest in bitcoin, which could drive the price of the cryptocurrency even higher. It would also legitimize bitcoin as an investment asset, which could attract even more investors.