The US securities regulator has officially approved the first US-listed exchange traded funds to track bitcoin, in what is being labelled a watershed moment for the world's largest cryptocurrency, as well as the broader crypto industry.
Earlier this week the SEC had denied that it had approved bitcoin exchange-traded funds which had led to the price of bitcoin to rise by more than $1,000.
It came after hackers compromised the official SEC X social media account and made the false declaration about an approval that had been eagerly awaited by the crypto industry.
Essentially the US securities regulator have given its blessing to 11 ETFs for bitcoin in the US. This approval should open cryptocurrencies to new investors who don't want to take the extra steps involved in buying actual bitcoin.
The Guardian newspaper explained that an ETF is an easy way to invest in assets or a group of assets without having to directly buy the assets themselves.
The SPDR Gold Shares ETF allows anyone to invest in gold without having to find a place to store a bar or protect it.
ETFs can also be easily traded on stock exchanges, the newspaper noted.
It should be remembered that since the arrival of bitcoin, people wishing to own one either had to adopt a digital wallet or open an account at a crypto trading platform such as Coinbase or Binance.
The SEC approval has been eagerly awaited by the crypto industry, and advocates say the development is a watershed moment that will help push crypto into the financial mainstream.
It is clear that many at the SEC still have reservations.
A number of crypto experts got in touch with Silicon UK to welcome the development, with some calling it good news for investors.
Eric Demuth, the co-founder and CEO of European investment platform Bitpanda, noted the SEC reluctance, and highlighted the potential implications for the price of bitcoin.
There was agreement from Nigel Green of financial and investment advisor deVere Group, that the impact of the SEC approval could skyrocket long-term BTC prices.
The deVere CEO says there are five main reasons to be bullish for the long-term price trajectory following the SEC approval.
The institutional validation, massive influx of capital, increased accessibility, market integration, and global adoption are powerful catalysts that could send BTC prices to potentially near all-time highs.
This Cyber News was published on www.silicon.co.uk. Publication date: Thu, 11 Jan 2024 12:13:04 +0000