The SEC’s approval of spot Bitcoin ETFs on January 10, 2024, changed the game for cryptocurrency markets. For Indian investors, this opened a new way to bet on Bitcoin without actually owning it—through regular brokerage accounts, the same way you’d buy a stock.
The Approval: January 10, 2024
The SEC approved 11 Bitcoin ETF applications on January 10, 2024, ending years of rejection letters. The commission had repeatedly turned down similar proposals before, citing market manipulation concerns. But mounting pressure from Wall Street giants like BlackRock and Fidelity, combined with clearer market infrastructure, eventually pushed regulators to say yes.
BlackRock, Fidelity, and Grayscale were among the biggest names that got the green light. Grayscale’s existing Bitcoin trust, which had been trading at a steep premium for years, converted into an ETF—a big deal for existing holders who could now trade more easily.
The approval came during Bitcoin’s recovery from the 2022 crash, when institutional interest in crypto was picking up again.
First Day of Trading: January 11, 2024
Trading started the next day on the NYSE and Nasdaq. Billions of dollars changed hands within hours. BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC) dominated from the start.
Bitcoin’s price jumped above $48,000 on the news—its highest level since the previous bull run.
Approved ETFs: The Key Players
Eleven issuers got approval:
- BlackRock’s iShares Bitcoin Trust (IBIT) – quickly became the biggest by AUM
- Fidelity’s Wise Origin Bitcoin Fund (FBTC)
- Grayscale Bitcoin Trust (GBTC) – converted from existing trust
- Bitwise, Valkyrie, Invesco, VanEck, WisdomTree, Franklin Templeton, Global X
Most waived management fees for the first few months to attract assets. Competition helped drive costs down.
Market Impact
Bitcoin crossed $48,000 after the approval. Brokerage platforms rushed to add ETF trading. The approval also influenced regulators in Europe and Asia who were watching to see how the US would handle this.
What This Means for Indian Investors
Indian investors can access these ETFs through international brokerage accounts, though SEBI rules on overseas investment apply. Tax implications exist too.
Locally, the approval sparked debate about whether India might eventually offer domestic Bitcoin ETFs. Nothing’s been announced yet, though.
What’s Next
Issuers are now filing for options trading on these ETFs and yield-generating products through Bitcoin staking. Ethereum ETF applications are under SEC review.
Pension funds and sovereign wealth funds are starting to explore allocations—a big shift from where crypto was just a few years ago.
Frequently Asked Questions
When was the Bitcoin ETF approved?
January 10, 2024. Trading began January 11, 2024.
Can Indian investors buy Bitcoin ETFs?
Yes, through international brokerage accounts. Check SEBI guidelines on overseas investment and consider tax rules.
How many Bitcoin ETFs were approved?
11 issuers: BlackRock, Fidelity, Grayscale, Bitwise, Valkyrie, Invesco, VanEck, WisdomTree, Franklin Templeton, Global X, and one more.
What’s the difference between a Bitcoin ETF and buying Bitcoin directly?
An ETF trades on regular stock exchanges. You don’t need to set up a crypto wallet or manage private keys. It also makes tax reporting simpler.
Did Bitcoin prices go up after the approval?
Yes. Bitcoin jumped above $48,000, its highest level since early 2022.
Will India launch its own Bitcoin ETFs?
No official proposals yet. SEBI is still developing India’s broader crypto regulatory framework.
