The SEC Greenlights Bitcoin ETFs

14:45 - 12 January 2024

Financial Services

In a landmark decision, the SEC has approved the first US-listed exchange-traded funds (ETFs) tracking bitcoin, marking a significant stride for the largest cryptocurrency in the world.

The regulatory nod clears the path for 11 bitcoin ETFs in the US, providing wider access to cryptocurrencies, even for those who might have disinclinations to navigate the intricate web of direct bitcoin ownership. It’s worth noting that the SEC decision followed a brief period of confusion, prompted by a post on platform X from the watchdog’s comprised account.

While ETFs provide retail investors with exposure to various assets without the need to physically acquire and manage those assets, the regulatory green light stands as a victory for bigwigs in the funds management space (Blackrock, Fidelity Investments and Invesco), which have fervently lobbied for regulatory approval.

The SEC decision has injected optimism into the cryptocurrency world after a prolonged period of volatility – in anticipation of the SEC’s green light, bitcoin surged by 70% in the last few months and competition for market share is expected to intensify as these ETFs enter the market. Some analysts, however, remain cautious, acknowledging the notorious volatility of bitcoin and its potential to expose mainstream investors to unfamiliar risks. Similarly, the SEC remains sceptical. Chairman Gary Gensler elucidated that the decision should not be construed as an endorsement for bitcoin, urging investors to exercise caution due to associated risks.

The SEC Greenlights Bitcoin ETFs

News Feed

Read More