SEC Approves Bitcoin ETFs, Connecting Wall Street and Crypto
The US Securities and Exchange Commission (SEC) has made a historic decision by approving several spot Bitcoin exchange-traded funds (ETFs). This move establishes a financial connection between Wall Street and the leading cryptocurrency.
Amidst a volatile day for BTC, currently trading at $45,937, down 0.9% in the last 24 hours, the SEC’s announcement marks the culmination of efforts to legitimize Bitcoin in America. It also provides a regulated and secure way for large-scale investors to gain exposure to BTC.
Eleven Approved Spot Bitcoin ETFs
The SEC has given its approval to all eleven spot Bitcoin ETFs that were under consideration. These include well-known names like BlackRock, Fidelity, Grayscale, VanEck, Bitwise, Franklin, Valkyrie, Hashdex, Ark Invest, WisdomTree, and Invesco Galaxy.
ETFs track the performance of specific assets or groups of assets and are traded on the stock market. The approved spot Bitcoin ETFs require fund managers to hold physical BTC.
Easier Access to Bitcoin’s Price Movements
Once these ETFs go live, which is expected to be soon, investors will have an easier way to buy shares and gain exposure to Bitcoin’s price movements without having to directly purchase the cryptocurrency.
The applicants for Bitcoin ETFs have been working closely with the SEC for months to refine their proposals. Late last month, they agreed to the SEC’s demand for cash creations and redemptions in their ETF structures.
Court Ruling Opens Doors
The SEC had previously rejected spot Bitcoin ETF applications while approving similar structured Bitcoin futures ETFs. However, in August, the D.C. Circuit Court of Appeals ruled against the SEC, stating that federal agencies must treat similar cases consistently. This ruling paved the way for the recent approvals.
Hot Take: Bitcoin ETFs Signal Mainstream Adoption
The approval of Bitcoin ETFs by the SEC is a significant step towards mainstream adoption of cryptocurrency. With Wall Street entering the scene, Bitcoin’s accessibility and legitimacy are further enhanced. This move opens doors for institutional investors and provides them with a regulated and secure pathway to invest in Bitcoin’s price movements without directly owning the cryptocurrency. As more investors gain exposure to BTC through these ETFs, it is expected to have a positive impact on the overall crypto market.
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