The US Securities and Exchange Commission reported in a 22-page order that regulators approved proposals to list 11 Exchange-traded funds (ETFs) on leading exchanges, including the New York Stock Exchange, “on an expedited basis.”
The exchange-traded funds are traded on public markets, giving investors control over asset price movements without directly owning the underlying assets, yet the funds themselves invest in digital currencies.
Authorising the creation of ETFs, which are comparable to stocks or mutual funds in terms of accessibility to ordinary investors, “represents a pivotal juncture for the digital asset space, signifying a movement towards mainstream legitimacy and acceptance,” Thomas Tang, vice president of investments at Ryze Labs, stated.
“This development comes after years of regulatory scrutiny and market volatility, marking a notable shift in the perception and utilisation of digital currencies. Bitcoin ETFs, by virtue of their existence within a regulated framework, will infuse a level of institutional credibility into the realm of digital assets.”
Originally launched in the 1990s, ETFs gained popularity in the early 2000s due to investors seeking an easy and low-cost way to bet on stock indices, commodities or a specific industrial sector. According to consulting firm Oliver Wyman, ETFs globally held about $6.7 trillion at the end of 2022.
Until Wednesday, investors looking to put their money into bitcoins had to establish an account on a cryptocurrency exchange and transact through a conventional exchange medium such as the dollar.
