U.S. SEC Okays Trade Of 11 Bitcoin Funds

The Securities and Exchange Commission (SEC) has reluctantly approved the first exchange-traded funds that hold bitcoin, saying it is still deeply skeptical about cryptocurrencies and that its decision did not mean it approves or endorses bitcoin, Ken Sweet reported for the Associated Press (AP).

The SEC’s approval was lukewarm at best as agency chairman Gary Gensler has repeatedly said cryptocurrencies need more regulation and investor protections. I Photo:

The SEC said it gave the green light to 11 exchange-traded funds for bitcoin even though it only faced a deadline for one application.

The agency said that would provide competition and a “level playing field.” Bitcoin ETFs could open the door to cryptocurrencies to many new investors who don’t want to take the extra steps involved in buying actual bitcoin.

It’s a major win for Wall Street, particularly trillion-dollar fund managers like BlackRock, Fidelity Investments, and Invesco that have pushed hard to get the SEC to approve their applications.

It’s also a win for the cryptocurrency industry, which has needed a win after nearly two years of turmoil that has resulted in the failure of several crypto firms, most notably FTX in November 2022.

The SEC’s approval, however, was lukewarm at best. Gary Gensler, the agency’s chairman, has repeatedly said cryptocurrencies need more regulation and investor protections.

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