The U.S. financial regulator, the Securities and Exchange Commission (SEC), has approved the iShares Bitcoin ETF. This is considered a significant approval for spot Bitcoin ETFs. After the news spread, the value of Bitcoin briefly rose to $29,850 but then retreated to $28,880. This information has also been reported by significant sources like Bloomberg.
Previously, the SEC had postponed several Bitcoin ETF proposals, including those from companies like Fidelity (Wise Origin), VanEck, WisdomTree, and Invesco. These companies were planning to offer a spot Bitcoin ETF through the Cboe BZX Exchange.
What Will Happen After SEC Approval?
This approval by the SEC indicates a possible change in the institution’s stance toward cryptocurrencies. BlackRock, the parent company of iShares, has had a high success rate in past ETF proposals. The company’s Bitcoin spot ETF proposal is being supported by Coinbase through a surveillance-sharing agreement.
This approval could have wide-ranging implications for other similar applications. However, the SEC’s approval of a Bitcoin ETF does not mean that others will also be approved.
It is also said that the Grayscale company plans to convert its GBTC fund into an exchange-traded fund (ETF), which is creating general optimism for future approvals. However, the SEC’s approval of the iShares Bitcoin ETF suggests that a new era in crypto finance may be beginning.
