On January 10, local time, the U.S. Securities and Exchange Commission (SEC) documents showed that the SEC approved 11 Bitcoin spot ETFs.
U.S. Securities and Exchange Commission (SEC) Chairman Gensler issued a statement on the SEC** approving Bitcoin spot ETFs. SEC Chairman Gensler said that although we approved the listing and trading of a number of Bitcoin spot ETFs on Wednesday, we did not approve or endorse Bitcoin. Bitcoin is a speculative, volatile asset. The approval of a Bitcoin spot ETF will bring more regulation.
Gensler said the products will be listed and traded on the country** exchanges in which they are registered. These regulated exchanges are required to have rules designed to prevent fraud and manipulation, and we will monitor them closely to ensure that they enforce these rules. In addition, the Commission will fully investigate any fraudulent or manipulative practices in the marketplace, including plans to use social platforms. Such regulated exchanges also have rules designed to address certain conflicts of interest and protect the interests of investors and the public.
How much impact will it have on the market?
So, what impact will the Bitcoin ETF have on short-term funding flows?
BlackRock, Valkyrie, Wisdomtree, Invesco Galaxy, iShares, Ark 21Shares, and Vaneck have all filed updated S-1 filings with the SEC for Bitcoin ETF applications. Among them, BlackRock announced that it had announced the injection of $10 million in seeds into its Bitcoin spot ETF in the early hours of this morning, Beijing time**; Vaneck said it would provide $72.5 million in seed funding for pending Bitcoin spot ETFs.
According to the Standard Chartered report, the approval of the ETF will be a huge game-changer for Bitcoin, allowing institutions and investors to invest in Bitcoin without directly owning it, and the bank expects to attract $50 billion to $100 billion in 2024 alone.
However, some industry insiders told the first financial reporter that after the news officially came out, Bitcoin and other cryptocurrencies did not have the expected increase, probably because the market has already digested most of the expectations. Moreover, follow-up investment needs to pay attention to risks, and there may be a drawdown of the "buy news, sell facts" type.
The SEC approved 11 Bitcoin spot ETFs. It means that the global financial market will usher in new changes and opportunities. The 11 Bitcoin spot ETFs issued this time will be traded through ** exchanges, and investors can trade through ** accounts, which makes the threshold for Bitcoin trading lower and attracts more investors to participate. Moreover, the trading difficulty of Bitcoin spot ETF is several levels lower than that of the original digital wallet transaction, so it will definitely attract ordinary people around the world to participate in this pie transaction.
Holding a Bitcoin ETF has a distinct advantage over holding Bitcoin directly. First of all, from a cost perspective, the transaction fees for Bitcoin ETFs are usually lower than buying and selling Bitcoin outright. In addition, Bitcoin ETFs also provide a more convenient way to invest, investors can easily buy and sell in a traditional ** account without the need for cumbersome cryptocurrency trading operations. Another important advantage is that Bitcoin ETFs can be held in investors' retirement accounts. For many investors, incorporating a Bitcoin ETF into a retirement savings plan can effectively circumvent the capital gains taxes that come with holding Bitcoin directly. However, this also means that there will be no reduction in taxes in retirement accounts when it comes to Bitcoin***, so investors need to carefully consider this potential risk. 
It's important to note that there is a higher risk associated with holding Bitcoin directly, especially in a dedicated cryptocurrency trading account. Due to the lack of regulation and safeguards, these accounts are vulnerable to hacking and the risk of exchange failures. These risk factors deter many institutional investors and financial advisors, making them reluctant to invest directly in Bitcoin. To solve this problem, the company launched a Bitcoin ETF. In this way, investors can hold Bitcoin ETFs in a traditional** account, thus avoiding the high risks that come with cryptocurrency trading accounts. The company strongly believes that this safer way of investing will attract a large number of institutional investors and capital inflows, further driving the growth and development of the Bitcoin market.