01/11/2024 07:43 pm
WASHINGTON–The cryptocurrency industry has marked a major landmark with federal approval of a new exchange traded fund (ETF) that tracks the price of Bitcoin.
The Securities and Exchange Commission has authorized 11 applications for companies to ETFs tied to Bitcoin, which analysts believe will create a potentially simpler way for people to invest in digital assets.
Among the companies receiving SEC approval were some of the world’s largest financial firms, including BlackRock and Fidelity. The ETFs are expected to trade on traditional platforms like the Nasdaq, according to the New York Times.
‘Hailed as a Sign’
“The approvals were hailed as a sign that mainstream financial institutions remain willing to deal in digital currencies even after 18 months of market crashes and high-profile bankruptcies,” the Times reported in its analysis. “Since the fall, Bitcoin’s price has surged more than 60%, as traders bet that approval of the new crypto products would give the industry an imprimatur of regulatory legitimacy, drawing fresh investment from professional wealth managers and amateur traders…The long-awaited authorizations bring a pillar of the mainstream finance system into the experimental world of digital money.”
The report noted crypto proponents had pushed for the introduction of a Bitcoin E.T.F. for years, hoping it would accelerate adoption of cryptocurrencies more broadly.
Bitcoin Rises to a High
“In 2021, the S.E.C. approved funds that track the fluctuations of Bitcoin without holding the currency itself,” the Times reminded.
Bitcoin’s price has skyrocketed so far this year and reached nearly $47,000, its highest value since 2022.
No comments:
Post a Comment
Please no profanity or political comments.
Note: Only a member of this blog may post a comment.