Bitcoin Crashes As SEC Approves All Spot Bitcoin ETFs

Published: Jan 10, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

The cryptocurrency industry has reached a significant milestone as the U.S. Securities and Exchange Commission (SEC) has officially approved all Spot Bitcoin ETFs.

This groundbreaking decision comes after months of anticipation, with over a dozen firms submitting applications for the issuance of this investment product. The approval opens the door for major asset management firms, including BlackRock, Grayscale, and Valkyrie, to launch their Bitcoin ETFs.

Approved Bitcoin ETFs and Key Details:

  • BlackRock’s iShare Bitcoin ETF (IBIT):
    • Initial Fee: 0.25%
    • Special Offer: 0.20% fee for the first $5 billion in assets for the initial 12 months.
  • Grayscale Investments Bitcoin ETF (GBTC):
    • Initial Fee: 1.5%
    • Conversion: Grayscale is transforming its Bitcoin Trust into a Spot Bitcoin ETF.
  • Fidelity Wise Origin Bitcoin Trust (FBTC):
    • Fee: 0.39%
  • Ark Invest ARK21Shares Bitcoin ETF (ARKB):
    • Fee: 0.25%
    • Waiver: All fees are waived for the first six months or until the first $1 billion in assets.
  • VanEck Bitcoin Trust (HODL):
    • Fee: 0.25%
  • Valkyrie Bitcoin Fund (BRRR):
    • Fee: 0.49%
    • Fee Waiver: Initial 3 months without fees.
  • Invesco Galaxy Bitcoin ETF (BTCO):
    • Fee: 0.39%
    • Fee Waiver: First six months or until the first $5 billion in assets.
  • Franklin Templeton Digital Holdings Trust (EZBC):
    • Fee: 0.29%
  • Bitwise (BITB):
    • Fee: 0.20% (updated fee after the initial waiver)
    • Waiver: the first six months or the first $1 billion in assets.
  • Hashdex Bitcoin Futures ETF (DEFI):
    • Fee: 0.90%
    • No Waiver Details: Waiver information not disclosed.
  • WisdomTree Bitcoin Trust (BRCW):
    • Fee: 0.39%
    • Fee Waiver: Initial 6 months or after the first $1 billion in assets.

Read more: Hackers Seize CoinGecko X Account, Promotes Fake Token Sale

Bitcoin crashes following SEC approval of spot ETF

With regulatory approval in hand, the next step for newly sanctioned spot Bitcoin ETFs is the beginning of trading. Industry experts predict shares could start changing hands as early as Thursday morning.

Interestingly, following the announcement by the SEC, the website and the official filing seem to have disappeared. The website shows an error 404, which means that it could either be deleted or moved to another URL.

Source: SEC Website

Read more: Tether Co-Founder Warns Of Bitcoin ETF Challenges

According to the latest market data, the approval of the spot Bitcoin ETF ended up being a sell-the-news event as Bitcoin is showing a drop in value even after the positive news. What’s even more interesting is that Ethereum surged past $2,500 following the announcement, with markets showing extreme volatility at the moment.

Bitcoin plunged to $45,500 and is now trading at $45,740 at press time. The largest cryptocurrency is showing signs of continuous ups and downs and is struggling to reach the $46,000 level.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.