The Securities and Exchange Commission (SEC) of the United States approved exchange-traded funds (ETFs) on Wednesday.
The ability to follow the price of bitcoin is a major changer for the cryptocurrency sector, which has been striving to develop such a product for more than a decade.
credit financial express
Since 2013, several asset managers have applied for bitcoin ETFs.
They were rejected by the SEC because they would be vulnerable to market manipulation.
credit economic times
However, in August, a court ruled that the SEC erred in rejecting Grayscale Investments' bitcoin ETF proposal, compelling the agency to reconsider its position.
The SEC authorised applications from ARK Investments, BlackRock (BLK.N), and Fidelity, among others, on Wednesday.
A spot bitcoin ETF is a huge win for the crypto business, strengthening the legitimacy of the cryptocurrency industry and bringing bitcoin farther into the mainstream.
It also comes at a time when the crypto business is at odds with the SEC, which has been cracking down on the sector.
In this specific war, the industry may claim success.
The first bitcoin futures ETF approved by the SEC in 2021 saw approximately $1 billion in shares traded on its first day.
Some analysts predict a spot bitcoin ETF might earn three times that amount on its first day. According to some experts, this sum might rise to $55 billion in five years.