US securities regulators on Wednesday gave the green light to a group of bitcoin exchange-traded funds, a long-awaited decision that is expected to boost the cryptocurrency.
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Regulators approved proposals for 11 ETFs to list on major exchanges, including New York. Bag โon an expedited basis,โ the Securities and Exchange Commission said in a 22-page order.
Exchange-traded funds trade on public markets, giving investors exposure to asset price movements without taking direct ownership of the underlying assets.
However, the funds themselves do not invest in digital currency.
The licensing of ETFs, which are comparable to stocks or mutual funds in their accessibility to everyday investors, "represents a pivotal juncture for the digital asset space, signifying a move toward legitimacy and acceptance." widespread," said Thomas Tang, vice president of investments at Ryze Labs.
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"This development comes after years of regulatory scrutiny and market volatility, marking a notable shift in the perception and utilization of digital currencies," Tang said.
โbitcoin โETFs, by virtue of their existence within a regulated framework, will instill a level of institutional credibility into the digital asset space.โ
Initially launched in the 1990s, ETFs took off in the early 2000s by investors looking for a simple, low-cost way to place bets on stock indices, commodities or a particular industry sector.
According to consulting firm Oliver Wyman, at the end of 2022 there were around $6.7 trillion held worldwide in ETFs.
Until Wednesday, investors who wanted to invest in bitcoin had to open an account at a cryptocurrency exchange and carry out transactions through a traditional medium of exchange, such as the dollar.
Wednesday's action opens trading in vehicles offered by major financial houses such as Fidelity and BlackRock.
(AFP)
