Bitcoin ETFs permitted by the US SEC in crypto market increase – DW – 01/10/2024 | EUROtoday

The Securities and Exchange Commission (SEC) on Wednesday accredited the primary US-listed trade traded funds (ETFs) to trace bitcoin.

The long-awaited transfer cleared the way in which for 11 ETFs to checklist on main exchanges, together with the New York Stock Exchange.

The regulators made it clear the choice “did not approve or endorse bitcoin.”

An ETF would have offered a solution to put money into bitcoin with out having to purchase the cryptocurrency outright.

Less than 24 hours earlier than the approval, the SEC described as “unauthorized” a social media assertion saying the ETFs approval. The worth of bitcoin briefly spiked Tuesday after the announcement.

What does the SEC determination imply?

The SEC accredited functions, together with from BlackRock, Ark Investments, 21Shares, Fidelity, Invesco and VanEck, amongst others. Some merchandise are set to start buying and selling as early as Thursday.

Standard Chartered analysts prompt the funds may draw between $50 billion and $100 billion this 12 months alone. This may drive bitcoin costs as excessive as $100,000.

The SEC prompt it remained deeply skeptical about cryptocurrencies, regardless of approving the ETFs. For a decade, the SEC had resisted the transfer, over fears the funds might be simply manipulated.

The path that led to ETFs

Last 12 months, a federal appeals courtroom in Washington declared that the SEC was not justified in rejecting asset supervisor Grayscale’s approval for its bitcoin ETF.

Since then, the regulatory greenlight has been extremely anticipated. The worth of bitcoin has jumped about 70% since October.

“Like lots of Grayscale’s future-forward traders, we believed that bitcoin may change the world, and we had been and stay excited on the prospect of democratizing entry to this asset by way of a US regulated funding automobile,” mentioned Grayscale CEO Michael Sonnenshein after the ETF’s approval.

rmt/lo (AFP, AP, Reuters)