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The digital assets industry reached a milestone last week when the U.S. Securities and Exchange Commission approved the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs).
The long-awaited regulatory approval enables U.S. investors to access bitcoin via established investment vehicles that trade on traditional, regulated exchanges. Previously, an investor seeking direct bitcoin exposure would have to transact on an unregulated crypto trading venue.
One of the newly approved spot bitcoin ETFs is BlackRock’s iShares Bitcoin Trust (IBIT), which commenced trading on Nasdaq on Jan. 11. BlackRock noted that IBIT is underpinned by the same institutional grade technology and risk management expertise used for iShares’ suite of 1,300 ETFs.
“The launch of the iShares Bitcoin ETF advances ETF innovation and expands access to bitcoin for investors,” Dominik Rohe, Head of Americas iShares ETF and Index Investing business at BlackRock, said in a Jan. 11 release. “For the first time, investors will be able to incorporate bitcoin in a consistent, convenient, and cost-effective way, alongside other asset classes like stocks and bonds, in their brokerage account.”
Kevin Kennedy, Executive Vice President of North American Markets at Nasdaq, echoed the theme of expanded access in remarks prior to BlackRock’s iShares team ringing the Nasdaq opening bell on Jan. 11.
“The approval of the Spot Bitcoin ETFs represents the integration of digital assets into mainstream finance,” Kennedy said. “IBIT helps to remove some of the obstacles and operational burden that may prevent asset managers and financial advisors from directly investing in bitcoin.”
Total volume for the 11 spot bitcoin ETFs exceeded $1 billion in the first 30 minutes of trading on Jan. 11, and reached about $4.6 billion for the day, according to industry data. IBIT saw more than $1 billion in volume, leading all 10 newly created ETFs on day one (Grayscale Bitcoin Trust, which had traded as a trust since 2015 and converted to an ETF last week, had $2.3 billion in trading volume).
Bitcoin market participants and observers say regulatory approval of spot bitcoin ETFs is just a single step in a long-term journey toward more widespread institutional and retail adoption.
“Nasdaq has been synonymous with innovation within the financial markets, and we are so proud to be part of such a historic moment in our partnership with Blackrock,” Kennedy added. “We also look forward to the continued growth in our relationship and this revolutionary product.”
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