In a landmark decision, the Securities and Exchange Commission has approved the applications for spot Bitcoin (CRYPTO: BTC) exchange-traded funds.
The decision is expected to revolutionize the cryptocurrency and traditional finance sectors.
The SEC approved applications of the Grayscale Bitcoin Trust, the Bitwise Bitcoin ETF, the Hashdex Bitcoin ETF, the iShares Bitcoin Trust, the Valkyrie Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Fund, the Fidelity Wise Origin Bitcoin Fund , and the Franklin Bitcoin ETF.
“… the Commission finds good cause to approve the proposals on an accelerated basis,” the SEC stated.
In a release, SEC chair Gary Gensler said that in light of the U.S. Court of Appeals for the District of Columbia’s decision, which said the SEC’s reasoning in the Grayscale order disapproval was inadequate, the SEC approved Bitcoin ETF applications.
He further said the watchdog’s decision is confined to exchange-traded products (ETPs) holding Bitcoin and that it should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.
“Nor does the approval signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws,” he said.
He further said 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 evasions and terrorist financing.
Why It’s Important: The SEC’s decision comes a day after a false tweet from the compromised X (formerly Twitter) account of the SEC erroneously announced the approval of all Spot Bitcoin ETF applications.
SEC Chairman Gary Gensler later disclosed the hack and discredited the tweet, leading to a rapid decline in Bitcoin prices.
Experts believe this decision could merge traditional finance with the cryptocurrency sector by providing a familiar, regulated investment vehicle that increases Bitcoin’s accessibility and legitimacy.
Brendon Sedo, a contributor to Core DAO and an expert in digital asset mining, said he believes this will lead to more innovative use cases and further integration…
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