Spot bitcoin ETFs begin trading after SEC approval ends a decade-long wait

Spot bitcoin exchange-traded funds began trading in the US on Thursday, a day after the Securities and Exchange Commission approved applications from 11 issuers, including some of the largest asset managers.

Unlike earlier products based on futures contracts, these funds hold bitcoin directly. Investors can buy and sell them through ordinary brokerage accounts, without needing a crypto exchange or wallet.

The decision follows years of rejections by the SEC, which had cited concerns about market manipulation. A court ruling last year, in a case brought by Grayscale, found that the regulator had not adequately explained why it rejected a spot product while allowing futures-based funds. That ruling put pressure on the SEC to reconsider.

SEC Chair Gary Gensler said in a statement that the approval did not amount to an endorsement of bitcoin, and warned investors about the risks. Issues to watch in the coming months:

• How much money flows into the funds from financial advisers and institutions
• The effect of competition on fees
• Whether the SEC considers similar products for other tokens

Supporters of crypto see the approval as a step toward the mainstream. Critics argue that easy access to a volatile asset could expose ordinary investors to losses. Either way, bitcoin now sits alongside stocks and bonds on many brokerage platforms.