Bitcoin spot exchange-traded funds (ETFs) have collectively surpassed US$10 billion in trading volume within four days of their launch.
The introduction of spot Bitcoin ETFs has been a game-changer for the industry, offering investors a regulated and accessible way to gain exposure to Bitcoin without the complexities of direct cryptocurrency ownership.
The Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applications last Wednesday, allowing the funds to begin trading last Thursday for the first time in the United States, the world’s largest economy.
The regulator had previously rejected all spot Bitcoin ETF filings, citing concerns over market volatility, liquidity, and potential manipulation.
Among those rejections was Grayscale’s bid to convert its Grayscale Bitcoin Trust, the largest Bitcoin fund in the world, into a spot Bitcoin ETF. In August, the District Court of Appeals delivered a favorable verdict for Grayscale, forcing the SEC to reevaluate its earlier refusal for the ETF conversion.
Following the agency’s recent landmark decision on the 11 Bitcoin ETFs, which included Grayscale’s, SEC Chair Gary Gensler admitted that the August court decision played a big role in the approvals.