January 11, 2024<\/p>\n\n\n\n
By Sharan Kaur Phillora<\/p>\n\n\n\n
On Wednesday, the U.S. Securities and Exchange Commission (SEC) decided to approve<\/u><\/a> rule changes that open the door for creating bitcoin exchange-traded funds (ETFs) in the United States. This move, long-awaited by many, grants regular investors a regulated pathway to access cryptocurrency’s often volatile and controversial world.<\/p>\n\n\n\n Here\u2019s what we know: <\/strong><\/strong><\/p>\n\n\n\n As a result of this decision, the Grayscale Bitcoin Trust, which holds about $29 billion of cryptocurrency, is likely to be converted into an ETF. Furthermore, this paves the way for the introduction of similar funds by major issuers like BlackRock\u2019s iShares and Fidelity, with the first funds expected to begin trading as soon as Thursday.<\/p>\n\n\n\n The approval marks a significant milestone in mainstream finance’s adoption of cryptocurrency. The ETF structure offers a regulated and familiar option for institutions and financial advisors to invest in Bitcoin. Cathie Wood<\/u><\/a>, CEO of Ark Invest, commented on the development: \u201cWe think that the SEC approval, should we and others get it, is a green light for institutions. We\u2019ve been talking to quite a few of them, and they\u2019re much more interested now that the SEC effectively is paving the way.\u201d<\/p>\n\n\n\n The SEC’s move represents a shift from its previously cautious stance on crypto, especially under Chair Gary Gensler’s<\/u><\/a> leadership. However, Gensler clarified that this decision is limited to ETFs holding bitcoin and does not indicate a broader endorsement of crypto asset securities. \u201cImportantly, today\u2019s Commission action is cabined to ETFs holding one non-security commodity, bitcoin. It should not signal the Commission\u2019s willingness to approve listing standards for crypto asset securities,\u201d Gensler stated<\/u><\/a>.<\/p>\n\n\n\n This approval has stimulated a competitive atmosphere among financial firms, with more than ten firms in the process of launching their own Bitcoin ETFs. The expectation is a market featuring diverse expense ratios and intensive marketing campaigns.<\/p>\n\n\n\n The anticipation of bitcoin ETFs has also positively influenced bitcoin’s price in recent months, signaling growing investor confidence.<\/p>\n\n\n\n Following a year of intense scrutiny and legal actions against crypto firms, this SEC approval marks a turning point for cryptocurrency, offering a regulated investment avenue to a broader range of investors and solidifying its position in the mainstream financial landscape.<\/p>\n\n\n\n About the author<\/strong><\/strong><\/p>\n\n\n\n Sharan Kaur Phillora\u2019s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology \u2013 two emerging technologies that will change how we interact with each other in the future. When she isn\u2019t exploring a new idea or concept, she enjoys reading literary masterpieces.<\/p>\n","protected":false},"excerpt":{"rendered":" January 11, 2024 By Sharan Kaur Phillora On Wednesday, the U.S. Securities and Exchange Commission (SEC) decided to approve rule changes that open the door for creating bitcoin exchange-traded funds (ETFs) […]<\/p>\n","protected":false},"author":1,"featured_media":4885,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/posts\/4884"}],"collection":[{"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/comments?post=4884"}],"version-history":[{"count":1,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/posts\/4884\/revisions"}],"predecessor-version":[{"id":4886,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/posts\/4884\/revisions\/4886"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/media\/4885"}],"wp:attachment":[{"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/media?parent=4884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/categories?post=4884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nftmetta.com\/wp-json\/wp\/v2\/tags?post=4884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}