Funds could start trading as soon as Thursday after months of anticipation and pushback
The US Securities and Exchange Commission has approved the first spot bitcoin exchange traded funds in a watershed moment that cryptocurrency enthusiasts are betting will draw new retail and institutional investors into the market.
The top American securities regulator granted permission on Wednesday to sponsors of 10 ETFs, ranging from established players such as Fidelity and Invesco to digitally focused newcomers including Grayscale and Ark Invest. The first funds — which trade on exchanges like stocks and enjoy special tax treatment in the US — are expected to start trading as soon as Thursday morning, when BlackRock will ring the opening bell at Nasdaq to promote its iShares Bitcoin Trust.
The approval comes after months of anticipation and a bitter legal battle. It also caps a wild 24 hours that saw hackers briefly seize control of the SEC’s account on the social media site X and falsely claim that the applications had already been approved, prompting sharp swings in bitcoin’s price. After the approvals, bitcoin was trading at about $45,000, well below the $69,000 peak it hit in November 2021 but nearly three times the $16,000 trough it hit in December 2022 after the collapse of the now notorious crypto exchange FTX.
While spot bitcoin ETFs have been available in other markets, the US approvals are expected to usher in a new era for the most popular and liquid crypto token. US institutional and retail investors will now be able to gain direct exposure to the coin through a regulated product, without the risks of buying from unregulated exchanges or the higher costs associated with ETFs that invest in bitcoin futures....
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