Regulators Approve New Type of Bitcoin Fund in Boon for Crypto Industry
Federal regulators on Wednesday approved a new financial product that tracks the price of bitcoin, a historic moment for the cryptocurrency industry that supporters hope will increase investment in the technology.
The Securities and Exchange Commission has authorized 11 applications by financial firms for what are known as “exchange traded funds” tied to Bitcoin, a potentially easier way for people to invest in the digital asset on traditional platforms like the Nasdaq. Some of the world's biggest financial companies, including asset managers BlackRock and Fidelity, were given approval to offer products known as ETFs, which can begin trading on Thursday.
The approval was welcomed as a sign that mainstream financial institutions are willing to use digital currencies even after 18 months of market decline and high-profile bankruptcies. Since the fall, the price of Bitcoin has surged more than 60 percent, as traders believe the SEC’s endorsement of new crypto products will give the industry a wave of regulatory legitimacy, leading to losses from professional money managers and amateur traders. New investment will be received.
The price of Bitcoin rose on Tuesday after a post announcing the approval of an ETF appeared on the SEC's official
The industry only had to wait until Wednesday, when the SEC authorized the products in a regulatory filing. The long-awaited announcement brings a pillar of the mainstream finance system into the experimental world of crypto.
This is a developing story. Check back for updates.