FirstFT: First spot bitcoin ETFs set to start trading in US

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The first spot bitcoin exchange traded funds could start trading in the US today after the Securities and Exchange Commission approved the move, ending months of anticipation.

The top American securities regulator granted permission yesterday to sponsors of 10 ETFs, ranging from established players such as Fidelity and Invesco to digitally focused newcomers including Grayscale and Ark Invest.

The funds trade on exchanges like stocks and enjoy special tax treatment in the US. BlackRock is expected to ring the opening bell at Nasdaq to promote its iShares Bitcoin Trust.

The approval caps a wild 24 hours that saw hackers briefly seize control of the SEC’s account on the social media site X and falsely claim that the applications had already been approved, prompting sharp swings in bitcoin’s price.

Cryptocurrency enthusiasts are betting the SEC’s move will draw new retail and institutional investors into the market. Here’s more on the watershed moment for crypto.

• ‘An embarrassment’: The fake post on the SEC’s official X account on Tuesday appears to have been the result of exactly the type of hack the regulator has spent years warning companies to prevent.

Here’s what else I’m keeping tabs on today:

• Israel-Hamas war: The International Court of Justice begins hearing a politically explosive case brought by South Africa alleging that Israel is committing genocide against the Palestinians.

• Economic data: The European Central Bank publishes its economic bulletin, while the US reports December inflation and unemployment claims data.

• London: Mayor Sadiq Khan and Michael Mainelli, lord mayor of London, are expected to speak at the City of London Corporation’s London Government Dinner.

• US politics: Hunter Biden is due to appear in a Los Angeles court on Thursday for an arraignment on tax charges after House Republicans moved to hold the president’s son in contempt of Congress yesterday. Meanwhile, closing arguments will begin in former US president Donald Trump’s civil fraud trial in New York.

• Companies: Fast Retailing, Infosys, Südzucker and Tesco have results, while Grafton, Hilton Food, Marks and Spencer, Robert Walters, Taylor Wimpey, Trustpilot and Whitbread have trading updates.

Five more top stories

1. Exclusive: Axel Springer has paid dividends of more than €750mn over the past four years, including a large award that came weeks after the German media group announced hundreds of job losses at its domestic news outlets. Figures seen by the Financial Times show that shareholders in the owner of Politico, including chief executive Mathias Döpfner and US private equity group KKR, shared a total of €125mn in March last year. Laura Pitel and Will Louch have more details.

2. Exclusive: US President Joe Biden plans to send a high-level, bipartisan delegation of former top officials to Taipei after Taiwan’s election this Saturday, in a move that could complicate efforts by the US and China to stabilise their strained relationship. The Chinese embassy in Washington said it “firmly opposes the US having any form of official contact” with Taiwan. Here are the people the White House has picked to lead the group.

3. EY’s UK boss Hywel Ball has been handed a further extension to his tenure as chair, with the board of the Big Four firm granting him a second exemption to continue in the role until June 2025. The latest extension for the 61-year-old, who has run the UK business since 2020, comes as EY’s policy of requiring partners to retire at the age of 60 faces scrutiny.

4. Exclusive: York university is lowering the entry requirements for some international students in response to “financial challenges”, according to an internal memo. The leading British university’s move follows warnings from cash-strapped higher education leaders about a downturn in the number of more lucrative international students coming to study in the UK. Read the full story.

5. Chris Christie has ended his campaign for US president just days ahead of the Iowa caucuses on Monday, the official start of the US presidential primary season. A donor told the FT that the former New Jersey governor did not intend to support another Republican candidate. Here’s how Christie’s move affects the race to the White House.

• Newsletter: Earlier this week, the FT’s Peter Spiegel wrote in Swamp Notes that while Christie “has been a lot of fun to watch”, he should throw in the towel. For prescient commentary on US politics, sign up for the newsletter if you’re a premium subscriber or upgrade your subscription here.

• Donald Trump: A luxury Scottish golf resort owned by the former US president’s family has made its first profit since the acquisition almost a decade ago.

News in-depth

Who are the Houthis? The Iran-linked “military entrepreneurs” have carried out more than two dozen attacks on merchant ships over the past two months, threatening global trade through the Red Sea. In doing so, they have created a significant challenge to the US and its western allies, which want to protect the region’s shipping lanes but are also wary of the Israel-Hamas conflict triggering a broader regional war.

We’re also reading . . . 

Chart of the day

European natural gas prices have fallen to their lowest levels since August as traders bet the continent’s vast reserves will see it through the winter, even as the region is engulfed in a cold snap.

Take a break from the news

Personal stylist Anna Berkeley offers some tips for refreshing your winter wardrobe without having to invest in new clothing, using inexpensive tweaks to breathe new life into worn garments.

Additional contributions from Benjamin Wilhelm and Gordon Smith