From 11 Rejections to Approval: The Comeback Journey of the Bitcoin Spot ETF

Do you still remember 2013? The Winklevoss twins (the same duo who sued Zuckerberg) submitted the first-ever Bitcoin spot ETF application to the SEC, and it was immediately rejected. What followed was like a financial drama:

• 2018: Gemini applied again → rejected once more
• 2021-2023: Industry giants like VanEck, Fidelity, Grayscale, BlackRock, and others took turns applying, only to be repeatedly slapped down by the SEC
• January 10, 2024: Plot twist! The SEC approved 11 Bitcoin spot ETFs in one go, including BlackRock’s iShares Bitcoin ETF

Why did it take so long? The SEC was worried about fraud risks and market manipulation. But as large institutions and the market matured, regulators finally softened their stance.

Spot ETF vs Futures ETF vs Trust Products—What’s the Difference?

Spot ETF: The fund you buy directly holds real Bitcoin, and you trade it on an exchange just like a stock. Advantages: lower cost, higher liquidity.

Futures ETF: Holds Bitcoin futures contracts, not actual BTC. Approved back in 2021.

Trust products like Grayscale: These are closed-end funds with poor liquidity and high fees—think of being able to trade only once a day.

What Does the Launch of Spot ETFs Mean?

1. Mainstream Acceptance: From being “demonized” to becoming a financial product, regulators have given their official stamp of approval
2. Capital Inflow: Both institutional and retail investors can buy directly through brokerage accounts—no need to mess with wallets or crypto exchanges
3. Market Potential: The crypto market is still tiny compared to traditional finance, so this opens a whole new door
4. Lower Barrier to Entry: Beginners no longer need to learn about private keys and cold wallets—it’s as simple as buying a mutual fund

Key Data: From the Winklevoss twins’ first application in 2013 to final approval in 2024, the entire process took 11 years. Over 10 top asset management firms had their applications rejected along the way, showing just how tough a nut this was to crack.

Now, the question is: How much capital will these 11 newly launched spot ETFs attract? Can they really kick off a new bull cycle in the crypto market?