SEC Officially Approves Bitcoin Spot ETF, BTC Price Stagnant, ETH Flying

BTC price performance is still running on the spot after the Bitcoin spot ETF was approved by US regulators. (Photo; Doc. Newsbtc)

JAKARTA - The crypto market began to stretch after the US Securities and Exchange Commission (SEC) approved 11 bitcoin spot exchange-traded funds (ETF) proposals on Tuesday on January 10, 2024. This decision is a historic milestone for the crypto industry, which has been waiting for years to approve new investment products, namely the bitcoin spot ETF.

With the approval of the spot's Bitcoin ETF, traders and investors expect an increase in BTC prices. However, market reactions do not match public expectations. BTC price performance is on-site and tends to stagnate.

Interestingly, Ethereum (ETH) as the second largest crypto asset under BTC, actually experienced a significant price spike. The price of BTC is in the range of IDR 713 million per coin. Meanwhile, ethereum actually jumped to 9.1%, reaching IDR 40,780 per coin based on Coinecko data today at 11:22 WIB.

Bitcoin ETF is an investment product that allows investors to buy and sell shares that reflect bitcoin prices without having to own or store the coins directly.

With the ETF, investors can access crypto markets through conventional stock exchanges, which are considered safer and more regular. ETF is also expected to increase crypto market liquidity and transparency, as well as attract institutional and retail investors.

Before the SEC approved spot Bitcoin ETF, the US regulator had rejected dozens of crypto ETF applications since 2017, citing market manipulation risks, security, and market instability. Only in October 2023, the SEC approved the first crypto ETF in the US, namely the ProShares Bitcoin Strategy ETF (BITO), which invested in bitcoin futures contracts, not bitcoin spots.

bitcoin futures ETFs have higher costs and risks than spot ETFs, as they have to pay premiums and rollover fees to extend the contract.

The approval of 11 bitcoin spot ETFs by the SEC recently marked a change in regulatory attitude towards the crypto industry, which is growing and growing in popularity. Several approved bitcoin spot ETFs include VanEck Bitcoin Strategy ETF (XBTF), Valkyrie Bitcoin Strategy ETF (BTF), and Simplify Bitcoin Strategy PLUS Inc ETF (MAXI). These ETF-ETFs began trading on the US stock exchange on Wednesday 10 January yesterday.