Investors interested in Bitcoin ETFs in the US have been transferring their 401k retirement plans to institutions offering seamless trading in a bid to obtain financial freedom.
The approval of 11 spot Bitcoin exchange-traded funds (ETFs) has received mixed reactions in the past two days. On one hand, the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) can be seen as a major event that opens a new era of mass adoption of Bitcoin and the web3 sector. On the other hand, the approval of spot BTC ETFs has been viewed as a violation of the law by undermining the set anti-money laundering laws. Furthermore, US SEC Chair Gary Gensler indicated that the approval of spot BTC ETFs is not an endorsement of the crypto assets.
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” Gensler noted.
Notably, US Senator for Massachusetts Elizabeth Warren differed with the SEC’s decision to approve spot Bitcoin ETF amid concerns over anti-money laundering. Nonetheless, the crypto community has reminded Senator Warren that the US justice system paved the way for the approval of spot BTC ETFs.
The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision.
If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.
— Elizabeth Warren (@SenWarren) January 11, 2024
Major Banks’ Reactions to the Approval of Spot Bitcoin ETFs
Following the approval of spot Bitcoin ETFs in the United States on Wednesday, Vanguard Group indicated that it will not facilitate their buying but only sales. As a result, investors seeking to get Bitcoin exposure to their portfolios have opted to transfer to friendly financial institutions like Fidelity Investments which supports seamless trading of spot Bitcoin ETFs.
Just transferred my 401k from Vanguard to Fidelity. It took about 15 minutes.
If you have an account with a broker currently blocking access to #bitcoin ETFs, close it and get out.
Make these boomers hurt
— Julian Fahrer (@Julian__Fahrer) January 11, 2024
Meanwhile, UBS Group AG (NYSE: UBS), a Zürich-based wealth management firm, has announced that it will allow access to some clients who want to trade spot Bitcoin ETFs. However, people close to the bank indicated that UBS will approve access under several conditions. One of the conditions set is that UBS cannot solicit the trades and accounts with a lower risk tolerance will not be able to buy the spot Bitcoin ETFs.
Similarly, New York-based Citigroup Inc (NYSE: C) intends to offer seamless trading services to the approved spot Bitcoin ETFs to its individual clients. Another financial firm that has already confirmed the support of spot Bitcoin ETFs trading is Charles Schwab Corp (NYSE: SCHW).
The approval of spot Bitcoin ETFs in the United States has significantly increased the crypto bullish sentiments. With Bitcoin halving less than 100 days away, crypto experts expect Bitcoin price to reach a six-figure value within the next few quarters. Moreover, the demand is rising exponentially on a limited supply of Bitcoin and other digital assets.