The U.S. Securities and Exchange Commission (SEC) made history on January 10, 2024, when Chairman Gary Gensler cast the deciding vote to approve 11 spot Bitcoin exchange-traded funds (ETFs). The landmark decision, which passed with a 3-2 vote, ended years of regulatory gridlock and opened the door for mainstream investors to gain direct exposure to Bitcoin through regulated financial products.
The Decisive Vote
During the SEC’s final voting session on Wednesday, commissioners voted on rule changes proposed by NYSE Arca, Nasdaq, and Cboe BZX to list and trade spot Bitcoin ETFs. Commissioners Hester Peirce and Mark Uyeda voted in favor, while Caroline Crenshaw and Jaime Lizárraga opposed. The stalemate was broken by Gensler, whose vote tipped the scales toward approval. Bloomberg analyst James Seyffart noted on social media: “For those that missed this detail yesterday in the frenzy. Gensler was the deciding vote to get the bitcoin ETF over the line with a 3-2 vote.”
The 11 Approved Funds
The SEC approved the following 11 spot Bitcoin ETFs for listing on NYSE Arca, Nasdaq, and Cboe BZX: ARK 21shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), WisdomTree Bitcoin Fund (BTCW), Bitwise Bitcoin Trust (BITB), iShares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Hashdex Bitcoin ETF (DEFI), and Grayscale Bitcoin Trust (GBTC). Trading commenced on Thursday, January 11, marking the first time U.S. investors could buy and sell Bitcoin-linked ETFs in a regulated exchange environment.
Gensler’s Cautious Stance
Despite casting the pivotal vote, Gensler issued a statement reiterating that the approval does not signify SEC endorsement of Bitcoin. He warned investors about the risks inherent in crypto assets, including volatility, fraud, and potential market manipulation. Gensler also maintained his position that most crypto tokens are securities, suggesting that further regulatory scrutiny lies ahead for the industry. This duality—approving the vehicle while cautioning against the asset—reflects the complex balancing act regulators face as they integrate digital assets into traditional finance.
The approval marked the culmination of a decade-long battle between the crypto industry and U.S. regulators. Previous applications were repeatedly rejected over concerns about market surveillance and investor protection. Gensler’s decisive vote not only altered the investment landscape for Bitcoin but also set a precedent for future crypto-related ETF approvals, potentially paving the way for products tied to Ethereum and other cryptocurrencies.