The United States Securities and Exchange Commission (SEC) has finally approved the multiple spot Bitcoin Exchange-Traded products (ETPs) applications less than 25 hours after the agency had debunked a “fake approval” post on its X account.
The US regulator announced this approval of a “number of spot Bitcoin exchange-traded product shares” in an official statement by its Chair, Gary Gensler, published on its website on Wednesday, January 10, 2024.
According to the official statement, the approval strictly follows certain conditions for ETP sponsors to ensure the safety of the public interest. They include:
- Sponsors of Bitcoin ETPs must “provide full, fair, and truthful” information regarding the products.
- The products must be listed and traded on licensed national securities exchanges.
- The Commission staff will independently complete the review of registration statements for ten spot bitcoin ETPs at once, which should promote transparency and competition for investors and the larger financial market.
It is worth noting that Gensler emphasized that the approval only applies to spot Bitcoin ETFs and doesn’t apply to any other cryptocurrency product or their legal status.
This approval comes after 11 years of laborious and lengthy procedures and rejections of multiple applications. Gary noted the previous rejections, about 20, which started even during former Chair Jay Clayton’s time, were done according to the rules and regulations at the time. He clarified that the agency evaluates filings by national securities exchanges based on whether they align with the Exchange Act and regulations and whether the products are built to safeguard the interests of the public and investors. According to him, the situation has “changed” now.
Despite the approval, Gensler made it clear that this does not signify the SEC’s endorsement of cryptocurrencies or related assets in the United States. He cautioned investors to be mindful of the associated risks tied to these assets.
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