2024-01-11 02:34:09
The Securities and Exchange Commission (SEC) has approved the first U.S.-listed Bitcoin exchange-traded funds (ETFs). According to its own information, the authority gave the green light on Wednesday for applications from BlackRock, Ark Investments and 21Shares, Fidelity, Invesco and VanEck, among others. Some products are scheduled to go on sale on Thursday. SEC Chairman Gary Gensler spoke of a turning point for the world’s largest cryptocurrency and the broader crypto industry.
Published/Updated: Recommendations: 6
The SEC’s decision was eagerly awaited. Several asset managers have sought approval to launch spot Bitcoin ETFs since 2013. However, the SEC has so far rejected these on the grounds that the products are vulnerable to market manipulation. Last year, 14 companies, including heavyweights like BlackRock and Fidelity, filed applications for spot Bitcoin ETFs and were now awaiting a decision from the SEC.
Analysts at British bank Standard Chartered had estimated that Bitcoin ETFs could attract $50 billion to $100 billion in investor money this year alone. This would possibly drive the Bitcoin price up to $100,000. Other analysts, however, assume that inflows over five years could be closer to around $55 billion.
Bitcoin, the world’s largest cryptocurrency, was last down 0.8 percent at $45,765. On Tuesday, a false report about the SEC decision sent the crypto industry into turmoil.
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