The US Securities and Exchange Commission (SEC) has given the green light to 11 spot bitcoin exchange-traded funds (ETFs).
Today’s landmark approval includes ETFs from major Wall Street asset management firms, from BlackRock to Franklin Templeton (BEN), as well as many well-known companies in the cryptocurrency world, and is expected to pave the way for the digital currency to attract large investment flows. .
The SEC’s decision comes after a period of anticipation and speculation in the industry, with more than a dozen companies filing to issue these investment products. The move is considered a turning point that could lead to greater acceptance and integration of Bitcoin into traditional financial markets.
These ETFs, which begin trading on Thursday, could make Bitcoin a potential staple. In retirement accounts such as a 401(k) or IRA and pension plansgiving it wide acceptance in the world’s largest financial market.
Specifically, the SEC allowed the following 11 ETFs Cash from various asset managers:
These approved ETFs are expected to provide a more regulated and accessible way for investors to gain exposure to Bitcoin, which could lead to greater adoption and greater stability for the cryptocurrency market.
What are ETFs and how do they work?
a ETFs, or exchange-traded fund, is a type of publicly traded investment that represents ownership of a collection of assets, such as stocks, bonds, or commodities. ETFs allow investors to buy and sell these holdings in the secondary market, providing an efficient and diversified way to invest in various assets without directly owning them. This makes investing easier for individual investors and provides the same liquidity as stocks.
“An ETF is a listed fund that replicates the performance of certain market components/instruments. Just as there are company shares as financial instruments, so are ETFs, which can be marketed in a very similar way,” explained Hernán González to iProUP. , Press Officer of NGO Bitcoin Argentina.
“The reason why everyone is focused is because of its characteristics: for years there have been ETFs for bitcoin futures, ether and other cryptocurrencies, but still (to date) not in spot or cash for bitcoin,” Gonzalez added. .