CRYPTOBIZ
A Decade-Long Wait Ends: Bitcoin ETFs Approved,
Ethereum Eyes the Same Fate
Posted on February 5 by Matthew
For years, the dream of a Bitcoin Exchange-Traded Fund (ETF) seemed just that – a dream. But in a pivotal move, regulatory hurdles have finally been cleared, paving the way for Bitcoin ETFs to become a reality. This long-awaited approval marks a significant turning point in the cryptocurrency landscape, potentially opening the doors for wider institutional adoption and impacting the future of Bitcoin and other digital assets.
A Decade in the Making:
The journey to Bitcoin ETFs began in 2013, with the Winklevoss twins leading the charge. Despite numerous attempts, the Securities and Exchange Commission (SEC) consistently rejected proposals, citing concerns about market manipulation, fraud, and investor protection. However, the tide turned in June 2023 when BlackRock, the world's largest asset manager, threw its weight behind a Bitcoin ETF application, signaling growing institutional interest.
Courtroom Victory Changes the Game:
The turning point came in October 2023 when a federal appeals court sided with Grayscale Investments in its lawsuit against the SEC. The court criticized the SEC's rejection of Grayscale's bid to convert its Bitcoin trust into an ETF as "arbitrary and capricious," paving the way for a final green light.
The BitcoinShrooms Collection:
The inaugural Ordinals auction features the "BitcoinShrooms" collection, a series of 222 pixel art pieces created by anonymous artist Shroomtoshi. Each piece explores the cultural and technical revolution of Bitcoin in a whimsical and educational manner.
Sotheby's Vision:
Sotheby's sees the launch of this Ordinals auction as a pivotal moment in the evolution of the NFT landscape. By bridging the gap between the traditional art market and the emerging world of Bitcoin-based NFTs, Sotheby's aims to open doors for new artists, collectors, and investors.
SEC's Stance: Approval with Caution:
While approving Bitcoin ETFs, SEC Chair Gary Gensler emphasized the agency's neutrality towards Bitcoin itself and highlighted the inherent risks of cryptocurrency investments. He also pointed to the need for stricter regulations in the crypto space, addressing concerns about non-compliance and potential conflicts of interest among trading platforms.
Market Reaction: Bitcoin Dips, Ethereum Rises:
The news of Bitcoin ETF approval had a mixed impact on cryptocurrency prices. Bitcoin itself experienced a slight dip, while Ethereum, another major cryptocurrency, saw its value surge to $2,500, fueled by optimism about potential Ethereum ETF approvals in the near future. The SEC has been reviewing Ethereum ETF applications since November 2023, and a similar decision could further shake up the crypto market.