SEC approves rule change opening the door to Bitcoin ETF creation
Bitcoin ETFs are coming following the SEC's approval of a regulatory rule change.
The SEC’s approval of rule changes regarding Bitcoin ETFs may mark a major shift for the cryptocurrency towards mainstream financial adoption. The SEC announced its decision this week, following a contentious relationship of regulation with Bitcoin and its proponents. However, with this new decision, various Bitcoin trusts may be set to convert to exchange-traded funds (ETF) in the US, allowing regular investors access and exposure to Bitcoin trading.
The SEC’s decision regarding rule changes for Bitcoin ETF creation was handed down this week, as reported by CNBC. It’s a long-awaited move in the financial industry that will allow financial advisors and institutions to buy exposure to Bitcoin in a regulated and familiar fashion. In fact, several funds are already set to begin trading Thursday, January 11, 2024. A notable one that may be among them is the Grayscale Bitcoin Trust, which aims to list an ETF tied to its $29 billion of Bitcoin holdings. iShares, Fidelity, Ark Invest, and 21Shares have also signaled intention to launch competing funds.
Source: Google
As controversial and volatile as Bitcoin has been, it still remains one of the most popular and highly valued cryptocurrencies around, and its move towards a more mainstream financial status is being touted by financial forces as a major step forward in cryptocurrency legitimacy in financial markets.
"We think that the SEC approval, should we and others get it, is a green light for institutions. We’ve been talking to quite a few of them, and they’re much more interested now that the SEC effectively is paving the way,” Ark Invest CEO Cathie Wood said on CNBC’s Halftime Report.
Even so, this also comes strangely close after the SECGov Twitter was hacked, signaling Bitcoin ETFs had already been approved. SEC Chair Gary Gensler was quick to follow up in saying they had not at the time.
Regardless, it looks like a big move for Bitcoin that will see the cryptocurrency further legitimized in financial systems, even if that seems to fly in the face of its original purpose, which was the establishment of a decentralized currency. Stay tuned for more cryptocurrency news and updates right here at Shacknews.
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replyTJ Denzer posted a new article, SEC approves rule change opening the door to Bitcoin ETF creation
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Finally! Regulated securities for underlying decentralized finance products! Super logical.
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I understand the concerns about the need for regulation and oversight in the cryptocurrency space. However, using bitcoin for everyday transactions is not only easy, but incredibly convenient. For example, I recently purchased a wedding dinner jacket from a London boutique through their website https://theartefact.com/bespoke-tailor-made-to-measure-2/tuxedo-dinner-jacket-suit-2/ and paid with bitcoin. The process was smooth and efficient, with no need for bank approval or high transaction fees. The payment was processed almost instantly, emphasising how practical and profitable using bitcoin can be in the real world. While regulatory measures can provide additional security and legitimacy, it is also important to recognise the ease and benefits of using cryptocurrencies such as bitcoin in our everyday lives. They offer a level of convenience and efficiency that traditional payment methods often cannot match.
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