On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) voted 3-2 to approve 11 spot Bitcoin exchange-traded funds (ETFs), a watershed moment for the cryptocurrency industry. The decision ended years of regulatory resistance and opened the door for mainstream investors to gain exposure to Bitcoin through regulated channels.
The Decisive Vote: Gensler Breaks a 2-2 Stalemate
During the SEC's final vote on the rule changes proposed by NYSE Arca, Nasdaq, and Cboe BZX, the commission split along ideological lines. Commissioners Hester Peirce and Mark Uyeda voted in favor of approval, while Caroline Crenshaw and Jaime Lizárraga opposed. With the vote tied at 2-2, SEC Chairman Gary Gensler cast the deciding vote to approve the ETFs.
Bloomberg Intelligence 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."
List of Approved Spot Bitcoin ETFs
The SEC approved the listing and trading of 11 spot Bitcoin ETFs across three exchanges. The approved funds are:
- 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)
- Grayscale Bitcoin Trust (GBTC)
Trading commenced on Thursday, January 11, 2024.
Gensler's Caution: Approval Does Not Equal Endorsement
Despite tipping the scales in favor of approval, Gensler issued a statement immediately afterward clarifying that the SEC's decision does not signify an endorsement of Bitcoin or other crypto assets. "The Commission's approval today does not mean we are approving or endorsing Bitcoin," he said. Gensler reiterated his view that most crypto tokens are securities and warned investors about the risks associated with crypto assets, including volatility, fraud, and market manipulation.
This dual approach—facilitating regulated products while maintaining a skeptical posture—reflects the SEC's delicate balance under Gensler's leadership. He has pursued aggressive enforcement against crypto exchanges and DeFi protocols while simultaneously allowing Bitcoin futures ETFs and now spot ETFs.
Market and Regulatory Implications
The approval marks a historic shift in U.S. crypto policy. For years, the SEC rejected Bitcoin ETF applications, citing concerns about market integrity and investor protection. The Grayscale Bitcoin Trust (GBTC) conversion—part of the approved list—was a key catalyst after a federal court ruled in Grayscale's favor, pressuring the SEC to reconsider.
The victory is particularly significant for advocates of digital assets. Commissioner Hester Peirce, often called "Crypto Mom," has long pushed for pro-innovation regulation. Conversely, Commissioner Caroline Crenshaw has warned that Bitcoin ETFs could expose retail investors to significant harm.
Going forward, the success of these ETFs will likely influence the SEC's stance on other crypto products, including spot Ethereum ETFs. Meanwhile, Gensler's decisive vote underscores his willingness to accept certain crypto products under rigorous oversight, even as he continues to label the broader crypto market as a "Wild West" requiring strict regulation.