The Securities and Exchange Commission has delivered a landmark approval of spot Bitcoin exchange-traded funds. This is a highly anticipated event that is expected to further crypto’s entry into mainstream finance.
The US Securities and Exchange Commission (SEC) has approved 11 applications for spot Bitcoin exchange-traded funds (ETF), including those from BlackRock, Ark Investments, Fidelity, Invesco and more.
«Since 2004, this agency has had experience overseeing spot non-security commodity exchange-traded products (ETPs), such as those holding certain precious metals. That experience will be valuable in our oversight of spot bitcoin ETP trading,» said SEC chairman Gary Gensler in a statement highlighting investor protection.
Speculative and Volatile
Despite approving the inaugural entry of spot Bitcoin in the ETF industry, Gensler noted that this did not reflect positive sentiments about the digital asset class.
«Though we’re merit neutral, I’d note that the underlying assets in the metals ETPs have consumer and industrial uses, while, in contrast, bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion and terrorist financing,» Gensler added.
Not an Endorsement
«While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,» he said.
