The U.S. Securities and Exchange Commission (SEC) has approved 11 spot Bitcoin exchange-traded funds (ETFs).
Today’s landmark approvals include ETFs from major Wall Street asset managers such as BlackRock and Franklin Templeton (BEN), as well as several big names in the cryptocurrency space, and are expected to attract major investment Paving the way for digital currency inflows.
The SEC’s decision comes after a period of anticipation and speculation within the industry, which has seen more than a dozen companies apply to offer these investment products. The move is considered a turning point that could lead to greater acceptance and integration of Bitcoin into traditional financial markets.
So much so that these ETFs, which begin trading on Thursday, could make Bitcoin a staple in the market. Retirement accounts such as 401(k) or IRA and pension plansmaking it widely accepted in the world’s largest financial markets.
Specifically, the SEC approved the following 11 ETFs Cash from different asset managers:
These approved ETFs are expected to provide investors with a more regulated and accessible way to acquire Bitcoin, which could lead to increased adoption and stability in the cryptocurrency market.
What is an ETF and how does it work?
A ETFAn exchange-traded fund, or exchange-traded fund, is a publicly traded investment that represents ownership in a collection of assets such as stocks, bonds, or commodities. ETFs allow investors to buy and sell these assets on the secondary market, providing an efficient and diversified way to invest in a variety of assets without directly owning them. This makes investing easier for individual investors and provides stock-like liquidity.
“An ETF is a listed fund that replicates the functionality of certain market components/instruments. Just as company shares serve as financial instruments, ETFs can also be marketed in a very similar way,” Hernán González explained to iProUP. , press officer for the NGO Bitcoin Argentina.
“The reason everyone is paying attention is because of its characteristics: Bitcoin futures, ETFs for Ethereum and other cryptocurrencies have been around for years, but (to this day) there is still no physical or cash Bitcoin,” González added.