NEW YORK, January 11, 2024 – On Wednesday, the U.S. Securities and Exchange Commission (SEC) made a groundbreaking announcement, approving 11 spot bitcoin exchange-traded funds (ETFs) for listing and trading. This approval represents a major milestone for the cryptocurrency market, as these ETFs will soon be available for investors on prominent trading platforms, including NYSE Arca, Nasdaq, and Cboe BZX Exchange. The approved ETFs include ARK 21Shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), WisdomTree Bitcoin Fund (BTCW), Bitwise Bitcoin Trust (BITB), iShares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Hashdex Bitcoin ETF (DEFI), and Grayscale Bitcoin Trust (GBTC). This diverse range of options reflects a growing institutional interest in bitcoin and a commitment to providing investors with more ways to gain exposure to the cryptocurrency.

The approval of these ETFs comes amid a competitive fee environment, with issuers engaging in a significant fee-cutting battle. The final registration statements (S-1) submitted to the SEC this week reveal that major players like BlackRock, the world’s largest asset manager, have aggressively reduced their fees. BlackRock’s latest filing shows a fee of 0.25%, with an even lower 0.12% fee for the first $5 billion in assets. This move aligns with similar strategies by Ark Invest and 21Shares, whose ETFs feature a 0.21% fee with a 0% waiver for the first six months or up to $1 billion in assets. Bitwise has set the lowest fee at 0.20% with the same waiver, while Grayscale remains the most expensive option at 1.5%. This fee competition is expected to drive significant investor interest and market participation.

The approved spot bitcoin ETFs adhere to the cash creation model, a structure preferred by the SEC for its alignment with regulatory standards. Ark Invest CEO Cathie Wood has expressed optimism about the potential impact of these ETFs, predicting they will significantly drive up the price of bitcoin. Meanwhile, VanEck’s digital assets director has highlighted the underestimated long-term benefits of spot bitcoin ETFs. Coinbase, which will act as the custodian for many of these ETFs, has indicated that it is well-prepared for the influx of new ETF products, having extensively geared up for this approval. The launch of these ETFs represents not only a significant regulatory milestone but also a crucial step in the broader acceptance and mainstream integration of bitcoin and other cryptocurrencies.