The Securities and Exchange Commission (SEC) has finally given its approval for the trading of Bitcoin exchange traded funds (ETFs) on Wall Street. This highly anticipated decision marks the first time that such approval has been granted by the regulator.
The SEC announced on Wednesday that it has authorized the trading of several Bitcoin ETFs, but it also made it clear that these funds are not necessarily recommended as good investments. This green light from the SEC is a major milestone for the cryptocurrency world, as it opens up the opportunity for retail investors to access Bitcoin without having to buy it directly from a specialist exchange.
With the approval of these ETFs, fund providers like BlackRock and Fidelity are expected to launch new products that will lend credibility to investing in cryptocurrency. This move by the SEC comes after years of skepticism towards Bitcoin, which was first offered by Tyler and Cameron Winklevoss back in 2013.
However, the SEC’s chairman Gary Gensler still has reservations about Bitcoin and its potential risks. He stated that while the SEC has approved the listing and trading of certain Bitcoin ETFs, it does not endorse the cryptocurrency itself. Gensler also warned investors to remain cautious about the risks associated with Bitcoin and other crypto-related products.
Despite these warnings, many financial influencers and social media personalities have endorsed these products. But traditional investors like Warren Buffett and Bill Gates have been critical of Bitcoin, with Gates even stating that he is not “bullish” on the cryptocurrency.
Interestingly, on Tuesday, an unauthorized post on the SEC’s Twitter account prematurely announced the approval of the Bitcoin ETFs. The post was quickly deleted, and the SEC stated that the account had been “compromised.”
Some analysts, such as those at Standard Chartered Bank, have predicted that the value of Bitcoin could more than double to $100,000 before the end of the year following the SEC’s approval. As of now, the price of Bitcoin has already risen to around $46,500 after the announcement. For more information on Bitcoin and other cryptocurrencies, be sure to check out our other articles.
