Bitcoin ETFs Approved: The Industry Reacts

It’s
here.
The
U.S.
Securities
and
Exchange
Commission
(SEC)

made
an
omnibus
decision
today
to
approve
a
host
of
spot
bitcoin
ETF
applications.

More
than
10
years
after
the
first
filing
for
a
crypto-based
exchange-traded
fund,
a
type
of
financial
product
designed
to
track
other
assets
like
commodities
and
equities,
the
SEC
has
decided
to
approve
the
first
ETFs
that
follow
the

spot
market
price
of
bitcoin.

For
full
coverage
of
bitcoin
ETFs,
click



here.

Many
analysts
believe
these
products,
introduced
into
the
market
by
a
host
of
Wall
Street
heavyweights
including
BlackRock,
Fidelity
and
VanEck
as
well
as
a
number
of
crypto
native
firms,
could

drive
significant
capital
into
bitcoin

(BTC).

See
also:



How
to
Buy
a
Bitcoin
ETF

Larry
Fink,
the
CEO
of
the
world’s
largest
asset
manager
BlackRock,
has
said
the
firm
filed
to
list
a
bitcoin
ETF
last
year
specifically
because
there
was

clear
customer
demand
for
something
like
it.
That
decision
opened
the
floodgates,
with
a
number
of
competing
applications
soon
following.

Bitcoin

gained
over
160%
since
that
moment,
based
on
the
idea
that
if
the
SEC
approved
bitcoin
ETFs,
any
number
of
retail
investors
and
companies
would
choose
to
invest
in
bitcoin.
Standard
Chartered
predicted
that
upwards
of

$100
billion
could
flow
into
bitcoin
ETFs
in
the
U.S.
this
year.

All
of
this
remains
to
be
seen,
but
now,
with
the
SEC’s
decision
to
approve
11
of
the
13
bitcoin
ETF
applications,
the
world
will.
CoinDesk
spoke
to
a
number
of
experts
—
traders,
executives
and
analysts
—
to
get
their
take
on
what
this
moment
means
for
the
entire
crypto
industry
going
forward.

Sergey
Nazarov,
co-founder,
Chainlink:
“Bitcoin
ETF
approval
has
made
it
clear
that
traditional
financial
institutions
have
a
significant
role
to
play
in
determining
how
the
crypto
markets
evolve.
This
was
evident
when
PayPal
launched
the
ability
to
buy
certain
cryptocurrencies,
and
some
banks
started
offering
crypto
custody.
The
approval
of
the
spot
Bitcoin
ETF
will
lead
to
an
influx
of
traditional
large
top-tier
financial
firms
like
BlackRock
and
Fidelity,
which
will
likely
actively
participate
in
the
crypto
markets.”

Gavin
Michael,
CEO,
Bakkt:
“Today’s
SEC
approval
of
a
spot
BTC
ETF
represents
a
significant
milestone
for
the
industry,
and
it
is
my
hope
that
it
signals
a
new
era
of
regulated
crypto
products
offered
by
reputable,
trusted
crypto
companies.
This
ETF
approval
has
the
potential
to
not
only
accelerate
market
adoption
but
also
to
foster
lasting
momentum
within
the
industry.
As
we
move
forward
with
more
ETF
applications,
it
is
essential
for
ETF
providers
to
collaborate
with
qualified
custodians
who
have
a
proven
track
record
in
safeguarding
digital
assets
like
BTC.
This
collaborative
approach
is
crucial
in
reducing
risks
and
creating
a
secure
environment
for
investors.”

Kristin
Smith,
CEO,
Blockchain
Association:
“The
approval
of
a
Bitcoin
ETF
adds
more
pressure
on
Congress
to
pass
fit-for-purpose
legislation
for
the
digital
asset
ecosystem.
Consumer
demand
is
poised
to
grow
exponentially
and
those
consumers,
investors,
and
entrepreneurs
deserve
clear
regulations
that
address
many
of
the
outstanding
questions
the
industry
has
been
urging
our
elected
officials
and
regulators
to
answer.”

Read
more:


Why
Is
a
Bitcoin
ETF
a
Big
Deal?
The
Gold
Market
Provides
a
$100
Billion
Answer

James
Angel,
associate
professor,
Georgetown
University:
“If
the
SEC
is
anti-crypto,
they
have
shot
themselves
in
the
head.
If
they
had
just
quietly
approved
the
Grayscale
ETF
application
all
those
many
years
ago,
there
would
be
a
few
crypto
ETFs
out
there
without
much
fanfare.
By
delaying
as
long
as
they
have,
they
are
creating
a
lot
more
free
publicity
for
crypto.
Also,
they
appear
to
be
consciously
setting
it
up
so
that
multiple
ETFs
will
start
trading
at
the
same
time.
Whatever
the
reason,
they
are
invoking
the
marketing
might
of
the
biggest
behemoths
on
Wall
Street
to
start
peddling
these
ETFs.
Expect
to
see
lots
of
advertising
pushing
various
crypto
products.
If
the
SEC
doesn’t
want
Mr.
and
Mrs.
Main
St
to
invest
their
IRAs
in
crypto,
the
SEC
chose
exactly
the
wrong
approach.”

Cami
Russo,
founder
of
The
Defiant:
“It’s
great
that
an
ETF
makes
holding
Bitcoin
easier
for
institutions,
but
ultimately
we’re
packaging
bitcoin
in
a
fund,
so
that
intermediaries
can
sell
them
to
investors,
when
crypto
should
be
about
pushing
investors
in
the
opposite
direction,
and
getting
them
comfortable
with
non
custodial
and
permission-less
solutions.”

Anil
Lulla,
CEO,
Delphi
Digital:
“Now
the
process
will
be
straightforward
to
buy
Bitcoin
for
retirement
accounts
with
much
lower
fees.
Today
is
the
last
day
ever
where
the
only
people
incentivized
to
shill
$BTC
and
crypto
are
us
in
the
community.
Tomorrow,
all
these
ETF
issuers
will
have
teams
of
people
incentivized
to
call
our
parents/grandparents
up
to
talk
about
Bitcoin.
And
the
competition
will
be
fierce.
Especially
in
this
first
year,
once
a
frontrunner
is
obvious,
it
will
continue
to
get
an
outsized
portion
of
inflows
into
these
ETFs.
Because
of
this,
the
fees
will
be
a
race
to
near
zero.
You’ve
already
seen
this
start
to
happen.”

Molly
White,
author
of
the


Citation
Needed
newsletter:
“Even
the
bitcoin
ETFs
are
approved
and
it
fails
to
have
significant
price
impact,
I
think
we
will
still
all
be
able
to
celebrate
bitcoin
achieving
an
important
milestone
towards
its
original
goals.

Finally,
people
will
be
able
to
turn
their
money
into
an

anonymous

peer-to
peer
asset

outside
of
government
control,

to
which
they
own
their
own
keys

and
thus
control
completely,
without
having
to
involve
powerful
financial
institutions
like
BlackRock.”

Cory
Klippsten,
CEO,
Swan
Bitcoin:
“The
top-of-funnel
for
Bitcoin
is
now
represented
by
the
most
established
and
trusted
Wall
Street
institutions
which
will
proceed
to
spend
hundreds
of
millions
of
dollars
extolling
the
virtues
of
Bitcoin,
and
only
Bitcoin.
Now
that
the
primary
entry
points
for
Bitcoin
exposure
do
not
include
appeals
to
gamble
with
hundreds
of
dubious
crypto
tokens,
we
just
might
see
the
end
of
massive
crypto
pump-and-dump
cycles.”

Lex
Sokolin,
managing
partner,
Generative
Ventures:
“I’m
excited
to
see
capital
flow
into
the
Bitcoin
ecosystem
at
a
time
where
more
programmability
and
functionality
is
available.
From
payments
companies
building
on
top
of
Lightning
to
inscriptions
allowing
for
tokenization
of
text
and
images,
it’s
exciting
to
see
Bitcoin
reflecting
the
broader
potential
pioneered
by
Web3.
My
hope
is
that
the
story
continues
to
shift
from
store
of
value
to
global
financial
infrastructure.”

See
also:


Bitcoin
ETFs:
The
Bull
Case

Preston
Byrne,
partner,
Brown
Rudnick:
“Spot
ETF
approval
is
going
to
prove
as
consequential
for
the
crypto
markets
as
the
advent
of
securitization
in
the
1980s
was
to
the
credit
markets.
It’s
the
first
time
that
there’s
been
a
bridge
between
TradFi
and
crypto
other
than
ACH.
The
space
is
going
to
get
a
lot
bigger,
very
quickly,
more
quickly
than
I
think
most
people
currently
in
the
space
are
prepared
for.”

Yiannis
Giokas,
senior
director,
Moody’s
Analytics
(risk
and
analytics
arm):
“The
SEC’s
approval
of
bitcoin
spot
ETFs
marks
a
significant
step
towards
the
institutionalization
of
cryptocurrency,
expanding
bitcoin’s
accessibility
to
a
wider
audience
in
a
more
regulated
and
simpler
manner.
Such
an
ETF
could
lead
to
increased
demand
for
bitcoin,
and
enhance
both
price
discovery
and
market
liquidity.
However,
this
development
also
brings
certain
risks.
The
notorious
price
volatility
of
bitcoin,
as
well
as
its
fluctuating
values
against
stablecoins
and
other
cryptocurrencies,
could
expose
mainstream
investors
to
a
less
familiar
spectrum
of
investment
risks.”

Cynthia
Lo
Bessette,
head
of
digital
asset
management
at
Fidelity:
“We’ve
long
believed
a
spot-priced
exchange
traded-product
would
be
an
efficient
way
for
investors
to
gain
exposure
to
bitcoin.
Fidelity
has
engaged
in
constructive
dialogue
with
the
SEC
for
years,
and
the
affirmation
of
this
approval
signals
positive
momentum
for
the
industry,
and
increased
choice
for
investors
who
want
to
engage
with
digital
assets.
As
a
firm,
we
remain
committed
to
meeting
the
growing
demand
from
investors
by
providing
them
with
tools
that
support
their
choices
and
facilitate
secure
access
to
markets.”

Andrew
Rossow,
attorney
and
CEO
of
AR
Media:
“This
level
of
confidence
in
a
bitcoin
ETF
being
approved
isn’t
something
to
take
lightly,
because
of
the
high-level
demand
that
the
market
has
been
begging
for
in
establishing
some
initial
regulatory
framework
with
respect
to
digital
assets
and
modern
day
securities
law.
The
frustration
with
the
SEC’s
internal
infrastructure
and
understanding
of
this
emerging
digital
finance
sector
has
only
been
met
with
short-sightedness,
leaving
not
just
the
SEC
on
autopilot,
but
also
leaves
consumers,
financial
institutions
and
retail
investors,
and
now
regulators
vulnerable
to
exploits
that
only
serve
to
hinder
market
growth
and
cap
the
expansion
rate
with
these
emerging
markets
and
technologies
in
our
digital
age.

“Whether
SEC
Chair
Gary
Gensler
likes
it
or
not,
the
system
must
change
with
respect
to
securities
laws,
because
the
domestic
and
international
markets
have
changed
(and
are
actively
adapting).
The
SEC
can
no
longer
hide
behind
its
fear
of
market
manipulation,
an
irony
in
which
the
SEC
has
actually
been
manipulating
the
market
by
resisting
natural
progression.
As
we
saw
today,
this
market
will
always
try
to
self-correct,
even
if
it
comes
in
the
form
of
mundane
black
hat
cyber
attacks.”

Samuel
Armes,
founder,
Florida
Blockchain
Association:
“I
think
at
the
end
of
the
day,
these
ETFs
are
going
to
bring
a
bunch
of
money
into
the
space.
It’s
going
to
make
the
price
go
up.
It’s
going
to
make
more
people
involved.
But,
I
also
think
it’s
going
to
start
the
division
between
actually
being
able
to
hold
your
keys
and
having,
you
know,
synthetic
bitcoin.
So,
I
think
most
people
will
opt
to
just
buy
and
hold
the
ETF.
I
think
a
lot
of
boomers
in
the
older
generation
will
never
self
custody
their
bitcoin,
which
is
obviously
antithetical
to
the
mission
of
the
token,
but
they
just
want
to
get
involved
in
it
now
that
bitcoin
is
back.
So,
the
base
layer
mission
of
Bitcoin
of
sovereign
independence
and
freedom
money
will
take
a
hit.
But,
the
price
is
still
coming
to
work,
and
adoption
—
quote-on-quote
—
will
go
up
as
well,
whatever
that
means.”

Nathan
McCauley,
CEO
and
co-founder,
Anchorage
Digital:
“A
spot
bitcoin
ETF
marks
the
end
of
crypto
as
a
“novel”
asset
class
—
and
the
beginning
of
a
world
where
it
can
be
part
of
every
portfolio.
SEC
approval
opens
the
floodgates
for
trillions
of
dollars
to
safely
flow
into
the
digital
asset
ecosystem
via
a
regulated
and
accessible
wrapper
that
suits
consumers
and
institutions
of
all
types.”

Sheila
Warren,
CEO,
Crypto
Council
for
Innovation:
“A
spot
bitcoin
ETF
isn’t
just
a
financial
instrument.
It’s
a
significant
and
practical
move
towards
integrating
crypto
into
the
mainstream.
This
move
helps
make
this
revolutionary
technology
more
accessible
to
all.

Yoni
Assia,
CEO
and
Co-founder
of
eToro:
“The
term
‘watershed
moment’
can
be
a
cliche,
but
in
the
case
of
today’s
bitcoin
ETF
news,
it
could
not
be
more
justified.
For
15
years,
bitcoin
has
been
growing
in
prominence
as
an
asset
class
amongst
retail
investors,
while
in
a
reversal
of
traditional
roles,
institutional
investors
have
remained
largely
on
the
sidelines
waiting
for
traditional
finance
rails
to
be
put
in
place.

“Today’s
news
provides
an
answer
for
institutional
demand
for
bitcoin.
It’s
good
news
for
crypto
markets
and
supportive
of
our
belief
that
bitcoin
is
an
unstoppable
technology.
It
is
digital
gold
and
taking
a
long
term
view,
I
believe
that
it
represents
the
intersection
of
finance,
economics
and
technology.

“For
our
users,
retail
investors,
today’s
news
is
positive
as
it
will
be
supportive
of
the
growth
of
bitcoin
as
an
asset
class,
but
I
believe
that
the
majority
of
ordinary
investors
will
want
to
continue
to
buy
and
hold
real
BTC.”

See
also:


Gary
Gensler’s
Statement
on
Bitcoin
ETF
Approvals

Troy
Cross
professor
of
philosophy
at
Reed
College
and
a
fellow
at
the
Bitcoin
Policy
Institute:
“Larry
Fink
is
Constantine,
meaning
the
emperor
who
converts
to
Christianity,
changing
both
the
empire
and
the
religion
forever.
You’ll
find
Christians
who
think
that
marked
the
victory
of
the
church
and
others
who
think
it
ended
true
Christianity.
Same
for
bitcoin.
Bitcoin’s
cultural
identity,
its
symbology
and
associations,
are
going
to
change.
And
this
is
inevitable
but
also
dangerous,
given
its
cypherpunk
roots
and
its
potential
as
a
tool
of
freedom.
Let’s
see
if
bitcoiners
can
educate
about
permissionlessness,
censorship
resistance
and
self-sovereignty
when
the
attention
is
on
NGU
number
go
up
and
the
narrative
is
dominated
by
trusted
intermediaries.”

Charles
d’Haussy,
CEO,
dYdX
Foundation:
“The
influx
of
new
capital
from
institutional
investors
through
Bitcoin
Spot
ETFs
will
be
amplified
in
derivative
markets.
Bitcoin
spot
ETFs
significantly
increase
the
liquidity
and
total
volume
of
bitcoin
traded.
This,
in
turn,
shall
benefit
derivative
markets
by
making
it
easier
and
cheaper
to
hedge
positions,
enter
and
exit
trades,
and
execute
sophisticated
options
strategies
(crypto
derivates
markets
are
about
10x
larger
than
crypto
spot
markets.”

Joshua
Davila
(aka


the
Blockchain
Socialist),
author
of
“Blockchain
Radicals”:
“The
creation
of
ETFs
and
the
bitcoin
institutional
financial
products
that
came
before
are
a
form
of
co-optation
by
the
status
quo.
In
case
there’s
any
more
need
for
proof
that
crypto
is
not
immune
to
being
completely
subsumed
by
the
financial
system
it
sought
to
destroy.”

Leah
Wald,
CEO
at
Valkyrie:
“Today’s
approval
of
spot
bitcoin
ETFs
is
a
landmark
moment
for
the
digital
asset
industry.
It’s
a
bold
acknowledgement
that
crypto
is
here
to
stay.
This
would
not
have
been
possible
without
nearly
a
decade
of
work
and
commitment
from
countless
people
who
believe
in
the
future
of
our
industry
and
see
crypto
as
an
integral
part
of
the
global
financial
ecosystem.
I
am
excited
for
what’s
in
store
for
the
future,
the
launch
of
the
ETFs
is
just
the
beginning
of
continued
widespread
adoption
and
education
of
what
is
possible
with
crypto.”