A historic moment for Bitcoin ETFs
The announcement of the approval of all 11 current applications for this investment product was made in the USA on January 10th. This included a joint application from Ark Invest and 21 Shares, which were the leading contenders for approval.
The SEC decided to approve multiple applications at once to create a balance and avoid giving any applicants a competitive advantage. The Commission concluded that all 11 applications had a similar nature, and there were no significant differences that would result in the rejection of any of them.
Starting from January 11th, the following applicants can launch their spot Bitcoin ETF funds:
- Franklin Templeton
- Ark Invest & 21Shares
- BlackRock (iShares)
- Invesco Galaxy
Why didn't the price of Bitcoin react dramatically?
The price of Bitcoin did not change dramatically following the announcement of the approval of the Bitcoin ETF. The current price of BTC stands at $46,604, which is only slightly higher than it was 24 hours ago. The modest reaction may be due to a false report of the Bitcoin ETF approval, which the SEC later denied. This caused a sharp price movement up and then down.
However, more significant price movements can be expected during the first day of trading for the new spot Bitcoin ETFs on the CME and Nasdaq exchanges starting at 9:30 AM Eastern Time, which is 15:30 Central European Time.
The impact of this influx of capital on the price of Bitcoin cannot be definitively predicted, but it is possible that the launch of the ETFs will increase price volatility compared to what we have seen after approval.
2Bminer welcomes this historic moment of the first spot Bitcoin ETF approval in the USA by the U.S. Securities and Exchange Commission (SEC). This move could have a significant impact on the entire market. We believe that this important milestone will bring new opportunities for our customers and help bolster confidence in cryptocurrency investments.