In the words of SEC Chair, Gary Gensler, “Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.”
After years of delays, the US SEC has finally approved spot Bitcoin (BTC) Exchange-Traded Funds, causing significant uptick in the prices of several cryptocurrencies.
In the official statement, the SEC mandated the ETF sponsors to provide comprehensive disclosures regarding their offerings to help investors take calculated risks. The approved ETFs will be traded on registered exchanges that possess adequate security measures to prevent fraud. The regulatory body also revealed that it is in the process of reviewing the registration statements of ten spot Bitcoin ETFs.
This landmark event has finally brought the long-standing feud between the SEC and asset managers like BlackRock, Grayscale, and Invesco to an end. Since ETFs are a fairly low-risk investment as compared to the volatile crypto industry, the SEC’s approval of Bitcoin ETFs could help in widespread adoption of cryptocurrencies.
Following the SEC’s announcement, Bitcoin, Ethereum, and other crypto tokens have experienced a major uptrend in their prices. Bitcoin has hit a 20-month high of $47,500, and is up by 5% within the last 5 hours. Similarly, Ethereum (ETH) has surpassed the $2,500 resistance, and has spiked by 10% since yesterday.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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