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…