Bitcoin ushers in a heavyweight moment!
On the early morning of January 11th Beijing time, the US Securities and Exchange Commission (SEC) announced that it had approved the listing and trading of spot Bitcoin ETFs through expedited mode, and authorized 11 ETFs to start listing and trading on Thursday local time. The SEC's approval this time is actually a rare compromise. After the announcement, the price of Bitcoin skyrocketed over $2000, once again reaching the $47000 mark.
Previously, the price of Bitcoin experienced a significant drop, with the largest intraday drop of over 7% on January 10th Beijing time. According to CoinGlass data, as of the evening of the same day, over 75000 investors in the 24-hour cryptocurrency market across the entire network had sold out, with a total amount of $280 million (approximately RMB 2 billion).
The trigger for the significant drop in Bitcoin prices was the big black hole caused by the SEC. On January 9th local time, the SEC announced on its official social media account X that it had approved the listing of spot Bitcoin ETFs. Subsequently, the Chairman of the SEC urgently issued a statement clarifying that the SEC's account had been hacked and unauthorized content had been published. The China Securities Regulatory Commission has not yet approved the listing and trading of any spot Bitcoin ETFs.
Early morning official announcement
On the early morning of January 11th Beijing time, the US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs for the first time in history, authorizing 11 ETFs to start trading on Thursday.
The SEC stated that it has approved the listing and trading of spot Bitcoin ETFs through expedited mode. Approved spot Bitcoin ETF issuers include Grayscale, Bitwise, Hashdex, iShares, Valkyrie, Ark 21Shares, Invesco Galaxy, Vaneck, WisdomTre, Fidelity, and Franklin.
In addition, according to the latest notice released on the Chicago Board of Options Exchange (CBOE) website, spot Bitcoin ETFs from multiple issuers are scheduled to start trading on Thursday local time.
After the news was released, the price of Bitcoin skyrocketed over $2000, once again above the $47000 mark, with a daily increase of 2.44%, recovering most of the previous day's decline.
The approval of Bitcoin spot ETFs will allow investors to trade the digital currency in their traditional stock brokerage accounts, rather than on startup platforms. Previously, the cryptocurrency industry experienced a series of scandals and bankruptcies, with startups facing increasingly strict scrutiny.
Cryptocurrency investors have been eagerly waiting for regulatory approval for Bitcoin spot ETFs, as this can make mainstream investors more confident about digital currencies.
According to a report released by Standard Chartered Bank, if the relevant ETF is approved, it will greatly change the game rules of Bitcoin, allowing institutional and retail investors to invest in Bitcoin without directly holding it. This year alone, it is possible to attract $50 billion to $100 billion in funds and push the price of Bitcoin up to $100000. Other analysts believe that the inflow of funds over the next five years will be close to $55 billion.
The SEC's approval this time is actually a rare compromise. Bitcoin spot ETFs were proposed as early as 2013, and for a period of up to 10 years thereafter, the current chairman of the SEC, Gary Gensler, and his predecessor, Jay Clayton, refused to allow such products to be launched on the grounds of volatile Bitcoin prices, concerns about investor protection, and the possibility of market manipulation.
On January 10th local time, Gensler issued a statement stating that although some Bitcoin spot ETFs were approved for listing and trading, Bitcoin was not recognized. Bitcoin is a speculative and highly volatile asset. The approval of Bitcoin spot ETFs will bring more regulation.
Since 2023, multiple financial institutions such as BlackRock and Fidelity have submitted Bitcoin spot ETF applications, attracting market attention. According to incomplete statistics, a total of 14 application agencies have held multiple meetings with the SEC to discuss the details of Bitcoin spot ETF issuance.
It is worth mentioning that multiple Bitcoin ETF issuers are currently further lowering fees to attract investors and highlight the fierce competition in this field.
On January 9th local time, multiple investment institutions including BlackRock, VanEck, Invesco, etc. submitted new documents to the SEC, lowering the rate standards set for ETF products, and detailing the arrangements made between institutions and market makers to ensure the liquidity and efficiency of transactions.
The US Securities and Exchange Commission has caused a "big black hole"
In fact, on the eve of announcing approval for the listing and trading of spot Bitcoin ETFs, the SEC caused a "super big problem", which once caused a huge shock in the virtual market.
On the early morning of January 10th Beijing time, the price of Bitcoin suddenly rose, approaching $47900 at one point. However, just ten minutes later, the market underwent a sudden change, and the price of Bitcoin quickly plummeted by over $2000 before continuing to decline. As of the evening of January 10th, the price of Bitcoin fell below $44500, with the lowest dropping to $44352 and the largest drop of over 7% during the day.
According to CoinGlass data, as of the evening of January 10th, Beijing time, more than 75000 investors in the 24-hour cryptocurrency market had sold out, with a total amount of 280 million US dollars (approximately 2 billion yuan).
The trigger for the sharp drop in Bitcoin prices was precisely the big mistake caused by the US Securities and Exchange Commission.
On January 9th local time, the SEC announced on its official social media account X that it has approved the listing of spot Bitcoin ETFs on all registered national stock exchanges. The approved Bitcoin ETFs will be subject to continuous supervision and compliance measures to protect investor interests.
After this news was released, the price of Bitcoin skyrocketed, approaching $47900 at one point, setting a new high in nearly a year.
Subsequently, SEC Chairman Gary Gensler urgently issued a clarification: "The SEC's account has been hacked and unauthorized content has been published. The CSRC has not yet approved the listing and trading of any spot Bitcoin ETFs."
After being debunked by the SEC, the price of Bitcoin plummeted and plummeted.
The huge fluctuations caused by this "black dragon" have caused dissatisfaction among many "big shots" in the cryptocurrency industry, calling for an investigation into this market manipulation behavior. Gemini co-founder Cameron Winklevoss even bluntly stated, "If @ SECGov stops manipulating the Bitcoin market, that would be great."
The Chairman of the US Securities and Exchange Commission warns of risks
After the "big black hole" incident, SES urgently stated that it will cooperate with law enforcement to investigate hacker attacks. Currently, unauthorized access to SEC accounts by "unknown parties" has been terminated. In addition, X platform also stated that it is investigating the reasons for the theft of US Securities and Exchange Commission accounts.
It is worth noting that Gensler has since issued a risk warning regarding virtual currency investments: "If you are considering investments involving virtual currency assets, please be cautious. Virtual currency assets may be seen as new opportunities, but there are also significant risks involved."
Recently, Gensler has repeatedly warned about the investment risks of virtual currencies.
On the 8th local time, Gensler stated that individuals providing virtual currency asset investments or services may violate applicable laws, including federal securities laws. When investors participate in virtual currency investments, they should be aware that they may lose key information and other important protections related to their investments. In addition, investing in virtual currency assets may also come with extremely high risks, often accompanied by drastic fluctuations.