Yesterday, the SEC (finally) approved 11 different applications for Bitcoin ETFs from BlackRock, Fidelity, and others. Today, these funds saw over 4 billion dollars of trading volume, and Vanguard decided not to list any Bitcoin ETFs on its platform.
There's a lot to unpack with this event, but to put the scale we're talking about in context, Bitcoin routinely sees over 40 billion dollars in daily trading volume between Coinbase and other exchanges. The coin's market cap is close to a trillion dollars, so 4 billion isn't huge in comparison.
These ETFs are just a traditional finance wrapper for crypto. The idea is to make it easier for institutions to have Bitcoin exposure without needing to rely on crypto exchanges or manage keys themselves. From a crypto purist perspective, some are concerned that this further centralizes the asset. Personally, I see this as an unavoidable reality. Newer cryptocurrencies can learn from and plan around the path that Bitcoin paves.
What this does mean is that the SEC is acknowledging cryptocurrency. Given the lack of regulatory clarity from Gensler & co, this is a nice change of pace. Whether the US government likes it or not, they are beginning to recognize cryptocurrency as a legitimate asset class. That's a step in the right direction.
Bitcoin and crypto don't need government approval to exist, but it is still good to see my own government realize this. If you can't beat em, join em.
P.S. tomorrow, I'll be sharing some free Shrapnel extraction pack codes, so watch for that email! First come, first served.