The cryptocurrency market witnessed a historic milestone on January 11 as the U.S. Securities and Exchange Commission (SEC) officially approved 11 spot Bitcoin exchange-traded funds (ETFs). This landmark decision marks a pivotal moment in the mainstream financial adoption of Bitcoin, triggering a wave of optimism across the digital asset ecosystem. In tandem, Bitcoin surged past $47,000, while Ethereum and a broad range of altcoins posted strong gains, reflecting renewed investor confidence.
Market Momentum: Bitcoin and Ethereum Rally
Bitcoin Breaks $47,000 Amid ETF Approval
On January 11, Bitcoin climbed above $47,000, reaching a price of $47,346 with a 2.65% gain over the previous 24 hours. This upward movement followed the long-anticipated approval of spot Bitcoin ETFs by the SEC, a regulatory green light that many analysts believe will open the floodgates for institutional capital.
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Ethereum Soars Past $2,600
Ethereum also experienced a significant rally, surpassing $2,600 and hitting $2,610—a 12% increase in just 24 hours. The momentum was further reinforced by a recovery in the ETH/BTC ratio, which climbed above 0.055, marking a 15% rise within two days. This suggests growing investor appetite for Ethereum and its ecosystem amid broader market optimism.
Altcoins Surge in Broad-Based Rally
With Ethereum leading the charge, altcoins across the board posted notable gains. Key performers included:
- PENDLE: Up 35.9% to $1.63
- ENS: Up 34% to $16.60
- SSV: Up 29.5% to $37.50
- OP: Up 25.4% to $4.02
- ARB: Up 29.54% to $2.18 (briefly surpassing $2.20, a new all-time high)
- MATIC: Up 10% to $0.88
- ETC: Up 26.7% to $26.40
- AUCTION: Up 29.1% to $23.79
This broad-based rally highlights increased risk appetite and growing confidence in the wider crypto market.
The Spot Bitcoin ETF Breakthrough
SEC Greenlights 11 Major ETFs
The SEC approved applications from major financial institutions including BlackRock, Fidelity, VanEck, Grayscale, Ark Invest, WisdomTree, and others to launch spot Bitcoin ETFs. The approved list includes:
- VanEck
- Bitwise
- Fidelity
- Franklin
- Valkyrie
- Hashdex
- Ark Invest
- Grayscale
- BlackRock
- WisdomTree
- Invesco Galaxy
This decision reverses years of regulatory hesitation and follows a court ruling in favor of Grayscale, which compelled the SEC to reevaluate its stance on spot Bitcoin products.
Why the Approval Happened Now
In a public statement, SEC Chair Gary Gensler clarified that the approval was driven by legal necessity—not endorsement. He emphasized that the decision stemmed from a U.S. Court of Appeals ruling that found the SEC failed to adequately justify its prior rejection of Grayscale’s application to convert its Bitcoin Trust into an ETF.
Gensler reiterated that Bitcoin remains a speculative and volatile asset often linked to illicit activities such as money laundering and ransomware. The approval applies only to non-security assets like Bitcoin and does not extend to other cryptocurrencies that may qualify as securities under federal law.
Fee Wars Begin Ahead of Launch
In the lead-up to approval, major asset managers slashed management fees to gain a competitive edge:
- BlackRock reduced fees for its iShares Bitcoin ETF (IBIT) from 0.30% to 0.25%, with a promotional rate of 0.12% on the first $5 billion in assets.
- Ark Invest and 21Shares lowered their fee to 0.21%, positioning themselves as one of the most cost-effective options.
These reductions signal a fierce battle for market share among issuers aiming to attract early institutional inflows.
What’s Next for ETF Trading?
BlackRock confirmed that IBIT is expected to begin trading on Nasdaq on January 11 (Beijing time). Bloomberg Intelligence analyst Eric Balchunas projects that the first day of trading could see up to $4 billion in inflows**, with potential to reach **$50 billion within two years.
Market insiders suggest BlackRock has already secured around $2 billion in seed capital from existing Bitcoin holders eager to transition into regulated ETF products.
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Cboe’s Early Move Sparks Controversy
Chicago Options Exchange (Cboe) briefly caused confusion by prematurely publishing approval notices for several ETFs before official SEC confirmation. Analyst James Seyffart noted that this “jumped the gun” move may have drawn regulatory ire, especially since other exchanges like Nasdaq did not follow suit. Cboe later withdrew the filings, clarifying they were part of an accelerated review process—not final approvals.
On-Chain and Ecosystem Developments
Ethereum Foundation Distributes Funding
The Ethereum Foundation transferred 1,000 ETH (worth approximately $2.38 million) to an address used for funding distribution (0x4e6). Since May 2021, this address has managed over 40,900 ETH in grants, supporting developers and ecosystem projects.
Ripple Announces $285M Share Buyback
Ripple Labs is buying back $285 million** worth of shares from early investors and employees, valuing the company at **$11.3 billion. CEO Brad Garlinghouse confirmed the company plans regular buybacks to provide liquidity but ruled out a U.S. IPO due to ongoing regulatory uncertainty. Ripple holds over $1 billion in cash** and more than **$25 billion in crypto assets, primarily XRP.
Project Updates and Strategic Moves
X (Formerly Twitter) Removes NFT Profile Feature
Elon Musk’s X platform has quietly removed the ability for premium subscribers to set NFTs as profile pictures—a feature introduced in 2022. While existing NFT avatars still display in hexagonal frames, no new users can enable this functionality. The move signals a strategic pivot away from Web3 features toward AI-driven tools and peer-to-peer payments.
Phoenix Group Acquires $187M in Bitcoin Miners
Mining firm Phoenix Group purchased $187 million worth of Bitcoin mining equipment from Bitmain, expanding its hashrate capacity amid rising network difficulty and post-halving expectations.
Arthur Hayes Joins AI-Crypto Project Ritual
BitMEX co-founder Arthur Hayes has joined Ritual, a decentralized AI computing platform, as an advisor. Ritual recently raised $25 million from Archetype and other top-tier investors and aims to bridge artificial intelligence with blockchain infrastructure.
Funding Highlights
EOS Network Foundation Invests $2.4M in NoahArk
The EOS Network Foundation has strategically invested $2.4 million in NoahArk Tech Group to strengthen DeFi development on EOS EVM. The project aims to build a robust decentralized finance ecosystem on the EOS network.
Eesee Raises $2.85M for Gameified Asset Platform
Eesee, a gamified digital asset marketplace, secured $2.85 million in seed and private funding from SevenX Ventures, Maven Capital, and others. Its native token ESE is set for launch in Q1 2025.
Tune.FM Secures $20M from LDA Capital
Web3 music platform Tune.FM, built on Hedera Hashgraph, raised $20 million from LDA Capital. The platform enables artists to earn micropayments via its JAM token and mint NFTs for music assets.
Network Performance & Market Sentiment
BNB Chain Reaches Record Activity Levels
BNB Smart Chain (BSC) achieved record highs in December 2024:
- Daily active users (DAU): Nearly 1.2 million, up 22%
- Average DAU now at 1.57 million
- opBNB DAU tripled to 780,000, ranking it the second most active Layer 2
Total Value Locked (TVL) also surged:
- Kinza Finance grew from $1.7M to $79M on BSC
- opBNB TVL jumped from $1M to over **$15 million**—a 15x increase
Futures Market Signals Caution
Despite spot market enthusiasm:
- Bitcoin’s year-end futures price on Deribit dipped below $50,000, with less than 10% premium over spot—indicating profit-taking.
- CME’s Bitcoin futures open interest reached 36% of total market share—historically high—suggesting growing institutional participation.
Frequently Asked Questions (FAQ)
Q: What is a spot Bitcoin ETF?
A: A spot Bitcoin ETF directly holds actual Bitcoin rather than futures contracts or derivatives. It allows investors to gain exposure to Bitcoin’s price through traditional stock exchanges without managing private keys.
Q: Why did the SEC approve these ETFs now?
A: The approval followed a court mandate after Grayscale won its lawsuit against the SEC. The court ruled that the SEC must treat Bitcoin futures ETFs and spot ETFs consistently under securities law.
Q: How will ETFs affect Bitcoin’s price?
A: Initial inflows could drive short-term demand. Long-term effects depend on sustained institutional adoption, fee competition among issuers, and macroeconomic factors.
Q: Are all cryptocurrencies now approved for ETFs?
A: No. The SEC only approved non-security assets like Bitcoin. Ethereum or other tokens deemed securities still face regulatory hurdles.
Q: Can I buy these ETFs on crypto exchanges?
A: No—these ETFs trade on traditional stock exchanges like Nasdaq or NYSE through brokerage accounts.
Q: What risks do spot Bitcoin ETFs carry?
A: Risks include management fees, tracking errors, market volatility, regulatory changes, and counterparty risks related to custody arrangements.
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