US SEC approves all spot Bitcoin ETFs, industry leaders react

Bitcoin spot ETFs approved: After a decade-long wait, the US SEC finally gave the green signal to 11 Bitcoin ETF applications which include Blackrock, Fidelity, and Invesco among others. The race for Bitcoin ETF applications which picked up pace in October 2023, pushed the Bitcoin price to $47,000 in the first few days of 2024. Bitcoin is currently trading at a $46,000 level and according to Standard Chartered, this will zoom to the $100,000 mark by the end of the year. 

The ETFs will begin trading on Thursday and will offer an opportunity for retail investors to leverage the growth of Bitcoin without holding or storing it. A regulated Bitcoin financial product approved by a major global financial regulatory like the SEC will add a lot of credibility to digital assets which will create trust among institutional investors and encourage more traditional financial institutions to enter the space.

Amid this, leading crypto voices have shared their excitement and future outlook with Republic Business, on how the industry is going to benefit from this ETF approval. 

Opportunity for massive innovation

Sharing insights into the crypto market movement after Bitcoin ETF approval, Mridul Gupta, COO, CoinDCX, said, “In the past 24 hours, the cryptocurrency market experienced positive momentum as the SEC approved all BTC spot ETFs. This approval, following years of delays and rejections, allows US investors access to ETF shares through their brokerage accounts. While the news is considered bullish for the market, BTC's price remained stable, moving sideways after an initial rally.” 

“The long-term outlook appears bullish for BTC and the overall crypto market. The expected influx of trillions in institutional capital, coupled with retail traders directly transacting through traditional brokerage accounts, implies increased adoption and volume generation,” said Gupta. 

Rajagopal Menon, Vice President, WazirX said, “After the landmark approval of Bitcoin ETFs by US regulators on Wednesday, Bitcoin (BTC) and other cryptocurrencies saw a significant uptick. Bitcoin's price climbed to approximately $47,500, up from slightly below $46,000 before the announcement. Ethereum (ETH) also surged by 11 per cent, exceeding $2,500 for the first time in 20 months. Attention is now keenly focused on US Ether ETF applications. This regulatory approval is anticipated to notably broaden Bitcoin's investor community and intensify interest in the wider cryptocurrency sector.” 

Labelling the decision as an opportunity for massive innovation, Shivam Thakral, CEO of BuyUcoin said, “ETFs normally have a long-term investment horizon with large ticket purchases which will add immense stability to the highly volatile crypto market. The mainstream adoption of Bitcoin will lead to massive innovation in digital assets and blockchain space as it will provide a fertile platform for launching new products, services, and applications.” 

“We are optimistic that other major crypto markets like India will soon follow the trend and create a more regulated environment for digital asset-based financial products,” Thakral added. 

Increased adoption and liquidity awaited

Referring to the Bitcoin ETFs approval by the SEC as a significant milestone, Edul Patel, CEO, Mudrex said, “After a decade of anticipation and regulatory challenges. The decision to greenlight 11 spot Bitcoin ETFs reflects a growing acceptance and recognition of digital assets within traditional financial markets. This move is expected to bring about increased adoption, liquidity and overall market maturity. It also signifies a shift in the perception of cryptocurrencies from a niche asset class to one that is gaining mainstream acceptance.” 

Nischal Shetty, CoFounder, Shardeum, told Republic Business that Bitcoin ETFs will bring in the liquidity that can lead to more inclusive and resilient financial ecosystem. Shetty said, “If Bitcoin ETFs reach similar figures as gold, then at the current market cap that’s potentially $50B to $80B in new liquidity. Embracing this evolution, we are witnessing the convergence of two worlds, where the decentralised ethos of crypto meets the regulatory framework of traditional finance, paving the way for a more inclusive and resilient financial ecosystem. This is the first digital asset ETF but it won’t be the last” 

“The fact that these ETFs are set to trade on major exchanges such as NYSE Arca, Nasdaq, and Cboe BZX Exchange adds further legitimacy to the crypto market. It opens up opportunities for a broader investor base to participate in the crypto space through familiar and established trading platforms. Investors are now closely monitoring the developments surrounding Ethereum ETF applications," added Patel. 

Ashish Singhal, Co-founder, CoinSwitch shared his excitement for the future of crypto markets after the Bitcoin ETF approval, listing the benefits that the industry is set to witness in the coming times. Singhal said, “The US SEC approval of Bitcoin ETF marks a monumental shift in the financial world. It's a watershed moment for crypto and will bring in a new wave of investors. Now, even the most cautious funds and the titans of Wall Street can tap into Bitcoin's potential.” 

SEC’s cautious stance

Gary Gensler, Chairman of the US SEC has again clarified his stance on cryptocurrencies right after the SEC’s approval of Bitcoin spot ETFs. Sudeep Saxena, Co-founder, CoinGabbar, underlining the same, said, “Chair of the United States Securities and Exchange Commission, Gary Gensler, has underscored that the agency's approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10 does not equate to endorsing Bitcoin. Despite this significant regulatory approval, the price of Bitcoin remained relatively unchanged in the past 24 hours. In stark contrast, Ethereum surged, registering a notable 10.50 per cent increase on Wednesday, overshadowing Bitcoin's subdued performance.” 

Vikram Subburaj, CEO, Giottus said, “Bitcoin gained by $2,000 in an hour after the historic approval of Bitcoin spot ETFs in the US. It is now consolidating near $46,400 and looks set to test its next resistance level at $48,000. The market will continue to be volatile over the next two days as new inflows of capital may be met with large holders who would take profits from the recent rally.”