The decade-long journey to a US spot bitcoin ETF

By Suzanne McGee and Hannah Lang

(Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday approved the first U.S. exchange-traded fund (ETF) that tracks the price of bitcoin, in a major victory for the digital asset industry which has been trying for a decade to launch such a product

Here are key events in the journey to approval:

2008: "Satoshi Nakamoto" introduces the concept of bitcoin

2010: The first retail transaction takes place when a user pays 10,000 bitcoin for two Papa John's pizzas

2013: As bitcoin's popularity grows, Cameron and Tyler Winklevoss, co-founders of crypto exchange Gemini, file their first application with the SEC to create a spot bitcoin ETF.

Grayscale Investments launches the Bitcoin Investment Trust, an open-ended private bitcoin trust.

2016: The Winklevoss brothers adjust their application numerous times, such as the exchange on which the product would be traded. They also file amendments naming State Street as administrator. Grayscale files with the SEC to convert its bitcoin trust into a spot bitcoin ETF.

2017: The SEC rejects the Winklevoss application on the grounds bitcoin markets where not mature enough. Grayscale withdraws its first attempt to convert its trust into an ETF, saying the regulatory environment was not developed enough.

2018: The SEC rejects the Winklevoss twins' second application to launch a spot bitcoin ETF, saying cryptocurrency exchanges do not have the necessary controls to prevent manipulation.

2020: Grayscale transforms its trust into an SEC-reporting entity, and its shares begin trading on the "pink sheets." Although not an ETF, it is the first publicly traded bitcoin fund in the U.S.

2021: The first ever spot bitcoin ETF launches in Canada. Gary Gensler replaces Jay Clayton as SEC Chair in April.

In October, the SEC approves the ProShares Bitcoin Trust listed on the Chicago Mercantile Exchange (CME), noting the CME has a satisfactory mechanism for surveilling abuse in the futures market. It is the first U.S.-listed futures-based bitcoin ETF, accumulating $1 billion in assets within its first days of trading - faster than any other ETF.

Also in October, Grayscale again submits an application to the SEC to convert its trust into a spot bitcoin ETF.

2022: The SEC rejects several applications from would-be spot bitcoin ETF issuers, including SkyBridge, Fidelity and Bitwise. The SEC also rejects Grayscale's application, prompting the company to sue the agency.

Amid crashing crypto prices, multiple crypto companies file for bankruptcy, including Three Arrows Capital, Celsius Network and FTX, whose founder Sam Bankman-Fried is also charged with fraud.

2023:

May: Cathie Woods' ARK Investments files for a spot bitcoin ETF, giving the SEC a maximum of 240 days to approve or reject the application.

June: BlackRock files a spot bitcoin ETF application with the SEC, raising industry hopes the agency may approve the product and sending the price of bitcoin to a one-year high. A flurry of other issuers, including Fidelity and Invesco, file bitcoin ETF applications in the subsequent weeks and months.

August: A federal appeals court in Washington D.C. rules in favor of Grayscale, saying the SEC did not justify why it had rejected its proposal. Europe's first spot bitcoin ETF begins trading on the Euronext Amsterdam stock exchange.

October: The SEC opts not to appeal the court's ruling in the Grayscale case and is required to reexamine the application.

2024:

Jan. 10: The SEC approves 11 proposals from issuers including BlackRock, Fidelity and VanEck, among others, to launch spot bitcoin ETFs.

(Editing by Michelle Price and Marguerita Choy)