The U.S. Securities and Exchange Commission (SEC) has granted approval to several exchange-traded funds (ETFs) that invest directly in bitcoin, marking a significant milestone. However, the events leading up to this decision were far from smooth.
Market Reaction
Broken Link and Reposted Approval Order
As the U.S. stock market prepared to close on Wednesday, the SEC officially posted an approval order for bitcoin ETFs on its website. However, the link led to an “error 404” page, leaving investors frustrated. Thankfully, the SEC later reposted the filing, ensuring that the information remained accessible.
With this recent development, 11 bitcoin ETFs are set to commence trading on Thursday. As investors eagerly await these new investment opportunities, it is essential to remain informed, especially in times of uncertainty.
Breaking Down the SEC’s Troubles with Bitcoin ETFs
It seems that there is some confusion surrounding why the first link was broken. Unfortunately, a SEC spokesperson did not respond to an email requesting comment on the matter.
Over the past 24 hours, the SEC has faced a rather embarrassing situation. This is especially problematic considering the agency’s repeated emphasis on the high risks and susceptibility to market manipulation associated with cryptocurrencies. Greg Magadini, Director of Derivatives at Amberdata, expressed his thoughts on the matter.
Despite the SEC’s warnings, Magadini believes that investors will not be discouraged from investing in bitcoin ETFs. Interestingly, Bitcoin has seen less volatility on Tuesday and Wednesday than what options traders had anticipated. According to CoinDesk data, the crypto has experienced a 2.9% increase within the last 24 hours, reaching approximately $47,486 on Wednesday.
Investors have already factored in an estimated initial flow of $1 to $2 billion into the bitcoin ETFs.
Read: Bitcoin in Spotlight as SEC Approves New ETFs, Ether Rallies. Here’s Why.
Steven Lubka, Head of Private Clients and Family Offices at Swan Bitcoin, echoes Magadini’s perspective. Lubka highlights that the hurdles encountered on the path to SEC approval are unlikely to dampen investor interest in these funds.
“The SEC doesn’t actually launch the ETFs,” explains Lubka during a call. “If anything, it demonstrates just how much attention is focused on these ETF products.”