Bitcoin makes its debut on U.S. stock market

The U.S. financial authorities have approved the trading of a Bitcoin spot exchange-traded fund (ETF) for the first time in history. There is an analysis suggesting that the accessibility of virtual assets will significantly increase in the future. Bitcoin transactions, previously limited to virtual asset exchanges, are expected to become as straightforward as stock investments. Some argue that virtual assets have evolved from being a 'speculation' to a legitimate means of 'investment.'

On Tuesday (local time), the U.S. Securities and Exchange Commission (SEC) approved the commencement of trading for Bitcoin spot ETF products by 11 asset management companies. "Today, the Commission approved the listing and trading of several Bitcoin spot exchange-traded products (ETPs)," stated SEC Chairman Gary Gensler. An ETF is a financial product that lists index funds on an exchange, allowing them to be bought and sold like stocks. ETP is a broader concept encompassing ETFs. While ETFs based on Bitcoin futures were already listed on global stock exchanges, including the United States, in 2021, and a Bitcoin spot ETF was also listed in Canada during the same year, this marks the first approval of a spot ETF in the United States, a key global financial center. Consequently, it is anticipated that the 11 funds submitted by entities such as BlackRock and Fidelity Investments will commence trading in the market starting on Wednesday.

Once spot ETF listing becomes possible, it is anticipated that a significant influx of funds from individual investors will flow into virtual assets, as investing in Bitcoin will be achievable through a regular stock account. Previously, individuals interested in investing in virtual currency had to open a virtual asset account through a separate coin exchange. However, with the new development, a pathway has emerged for indirect investment in Bitcoin, similar to a general public offering fund, through a listed ETF without the need to hold Bitcoin directly. Currently, Bitcoin futures and spot ETFs are prohibited from being listed and traded on the domestic stock market. However, domestic investors have the option to invest in Bitcoin ETFs listed overseas, provided they have an overseas securities account. “Bitcoin appears to have established itself as an investment asset,” Bank of Korea Governor Lee Chang-yong stated during a press conference on Wednesday. “It is time to assess the value and safety of Bitcoin ETF as an investment asset.”

However, because the possibility of approval by the U.S. authorities was already factored in on this day, the price of Bitcoin exhibited relatively minor fluctuations. It rose to approximately $47,500 immediately after SEC approval and then retreated to around $46,000.


abro@donga.com