Bitcoin Wobbles Below $46K, Ether and Grayscale’s GBTC Jump as SEC Approves Spot Bitcoin ETFs

Bitcoin (BTC) on Wednesday climbed to $46,200 then slid nearly 2% in a volatile period as the U.S. Securities and Exchange Commission (SEC) approved spot-based BTC exchange-traded funds (ETF), a landmark decision for the digital asset industry.

The largest and original cryptocurrency dropped to $45,000 from $46,500 earlier in the day when the Cboe exchange retracted a filing related to spot BTC ETFs, spooking investors. This came after Tuesday’s wild price swings when the agency’s official X (formerly Twitter) account got compromised and posted a false approval announcement.

Ether (ETH), the second-largest crypto by market cap, jumped 10% past $2,500 for the first time in 20 months as attention turns to spot-based ether ETF applications already filed to the agency.

Shares of the Grayscale Bitcoin Trust (GBTC), the largest closed-end bitcoin fund that now has permission to convert into an ETF, popped to $40, their highest price since December 2021, TradingView data shows.

Coinbase (COIN), the digital asset exchange whose custody service plays a key role for multiple bitcoin ETF issuers’ offerings, was flat around $151. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) also remained unchanged.

Anticipation of the first bitcoin ETFs in the U.S. that can hold the underlying asset has been a boon to the crypto market since Wall Street giant BlackRock filed paperwork in June to create one – a move soon followed by other applicants.

These vehicles are considered superior to already listed futures-based offerings, with bulls betting they will attract significant inflows to the largest cryptocurrency.

Despite 10 years of failed attempts to list spot bitcoin ETFs in the U.S., most market observers overwhelmingly expected regulatory approval this time given BlackRock’s track record of successful applications and asset manager Grayscale’s court victory over the agency in August.

Now, all attention turns to how much demand these investment vehicles will attract when they start trading.