In a significant development for the cryptocurrency space, US securities regulators have given their approval to a group of bitcoin exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) granted approval for 11 ETFs to list on major exchanges, including the New York Stock Exchange. This decision is expected to boost the cryptocurrency market by providing mainstream investors with exposure to bitcoin without the need for direct ownership of the digital asset.
ETFs are financial instruments traded on public markets, offering investors exposure to the price movements of underlying assets. In this case, the approved ETFs will invest in bitcoin, marking a pivotal moment for the digital asset space. Thomas Tang, Vice President of Investments at Ryze Labs, stated that bitcoin ETFs, operating within a regulated framework, bring institutional credibility to the realm of digital assets.
This move allows investors to trade vehicles provided by mainstream financial institutions like Fidelity and BlackRock, making it more accessible for traditional investors. Bitcoin prices experienced a 1.4% increase, reaching $46,576 following the SEC’s approval. The decision is seen as a regulatory pivot, as anticipation of approval had already influenced bitcoin’s volatility in recent weeks. The SEC had previously blocked similar investment vehicles but changed its approach after a court ruling determined the agency had failed to adequately explain its reasoning for denying a Grayscale ETF.
SEC Chairman Gary Gensler emphasized key protections for investors, including disclosure requirements and listing on regulated exchanges. While the SEC approved the listing and trading of certain spot bitcoin ETF shares, Gensler warned investors to remain cautious about the risks associated with bitcoin and crypto-related products. Representative Patrick McHenry welcomed the decision, stating that it would provide investors and markets with greater access to this “generational technology.”
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