“This is a pivotal moment that legitimizes Bitcoin’s future,” said LMAX Group’s CEO, David Mercer, after the Securities and Exchange Commission approved 11 Bitcoin exchange-traded fund (ETF) applications.
The crypto industry has received the much-anticipated approval for a spot Bitcoin ETF in the United States. Although only 11 companies were approved to list a Bitcoin ETF, the regulatory decision could benefit the entire industry.
The Industry Reacts
Following the decision yesterday (Wednesday), the big and small personalities of the crypto industry have poured into social media with enthusiasm.
“We're so back,” wrote Matt Hougan, the CIO at Bitwise, one of the companies receiving the SEC’s approval for a Bitcoin ETF. Bitwise confirmed that it will list its Bitcoin ETF on NYSE Arca on Thursday.
We're so back.
— Matt Hougan (@Matt_Hougan) January 10, 2024
“It's hard to fully capture how big today is for bitcoin,” Hougan said in another statement, adding: “But ‘game-changer,’ ‘sea change,’ or ‘turning point’ get closest. For more than a decade, investors who wanted to access the world's largest crypto asset had to wrestle with how to own it. For many mainstream investors, that hurdle is now gone.”
Bitwise will donate 10% of the profits of the Bitwise Bitcoin ETF (ticker: BITB) to bitcoin open-source development.
— Bitwise (@BitwiseInvest) January 10, 2024
Recipient orgs:
- @BitcoinBrink
- @OpenSats
- @HRF
Bitcoin is important to the future. We're excited for $BITB to support its foundation 👇 pic.twitter.com/JMzd4bMOB9
“3,845 Days"
Cameron Winklevoss, who accused the SEC of market manipulation a day before, highlighted that the approval came “3,845 days” after the first application for a Bitcoin ETF by him and his broker, Tyler Winklevoss, in 2013.
“Happy Bitcoin ETF Approval Day!” the Winklevoss twins wrote on X (formerly Twitter).
First they ignore you, then they laugh at you, then they fight you, then they make you wait 10 years...then you WIN!
— Cameron Winklevoss (@cameron) January 10, 2024
Other market participants who received the approval for Bitcoin ETF detailed their belief in the asset class. Jan van Eck, the Chief Executive Officer at VanEck, wrote: “We understand to our core that investors need a hedge in their portfolios if and when governments lose control over the money supply.”
1/ We are not tourists to bitcoin. For 7 years—since 2017—we have been advocating for the approval of an ETF and educating the market through breakfast seminars in our midtown office, research papers, and more.
— Jan van Eck (@JanvanEck3) January 10, 2024
Gensler's Statement
The SEC delayed and rejected Bitcoin ETF applications for years. However, as the SEC's Chief, Garry Gensler, pointed out, a court decision against the regulator against Grayscale played a part in the recent approvals.
“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 Grayscale Order),” Gensler stated. “The court, therefore, vacated the Grayscale Order and remanded the matter to the Commission. 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.”
Another major player that might have influenced the regulator’s decision was the entry of BlackRock with an application for a Bitcoin ETF.
JUST RELEASED: Ark 21Shares #Bitcoin ETF Ad (ARKB)
— Simply Bitcoin (@SimplyBitcoinTV) January 11, 2024
"Aren't You Just a Little Bit-Curious?" pic.twitter.com/IiHT5FfvCZ
Brokerages Are Bullish
JJ Kinahan, the CEO of IG North America and President of tastytrade, said: “We’re always in favor of allowing retail traders and investors to make their own self-directed decisions, and we see crypto as a product that is truly not going away – and in fact, it seems to be getting more support year after year. Retail traders and investors should be able to, as appropriate, choose to invest in and or trade this product as fits their investment needs.”
Predicting the effects of the approval, Ryan Grace, the Head of tastycrypto, added: “Long-term, a spot bitcoin ETF provides a tailwind for flows into the asset class. As a result, I think we see volatility dampen over time and the price generally supported by more participation from investors.”
Bitcoin Fear and Greed Index is 76 - Extreme Greed
— Bitcoin Fear and Greed Index (@BitcoinFear) January 11, 2024
Current price: $46,628 pic.twitter.com/UuNIIaToQ4
LMAX’s Mercer added that the move “marks a significant step forward in the convergence of digital assets and traditional finance. The approval of these Bitcoin ETFs is just the start of increasing market access to crypto for institutions and private investors who were previously disadvantaged. It is our long-held view that blockchain and tokenization are the future of capital markets, and crypto, as a proxy for that tokenization, is an essential element of a broad, diversified investment portfolio.”
Paolo Ardoino, the CEO of Tether and CTO of Bitfinex, said: “This momentous event is anticipated to significantly broaden the accessibility and legitimacy of Bitcoin, potentially leading to a surge in investments and widespread adoption. Such increased interest and legitimacy are likely to spark a wave of innovation, attracting more talent and capital into the industry.”
Gracy Chen, the Managing Director at Bitget, pointed out at the possibility of increasing demand, saying: "the future price movement will also be impacted by further capital inflows into Bitcoin ETFs. The abundance or scarcity of funds will play a crucial role in market sentiment and price fluctuations, determining whether Bitcoin prices continue to rise or experience a decline. This event may trigger intense market volatility, and investors should closely monitor the market's reaction post-ETF approval, as well as the flow of funds, to better formulate their investment strategies."
