Crypto milestone: U.S. approves bitcoin ETFs
U.S. approves bitcoin ETFs (Getty Images)
The U.S. government gave the green light for the first-ever U.S.-listed exchange-traded funds (ETFs) that track bitcoin, marking a huge shift for the cryptocurrency world. The Securities and Exchange Commission (SEC) approved 11 applications, including ones from big financial players like BlackRock, Ark Investments, Fidelity, Invesco, and VanEck, according to Reuters.
Despite some concerns from officials and investors about the risks involved, the ETFs are set to start trading soon, sparking competition for market share.
These ETFs are a game-changer because they allow investors to get into bitcoin without actually owning it. This is seen as a positive move for making bitcoin more accepted in traditional finance. Some experts predict that ETFs could attract a significant amount of money, with estimates ranging from $50 billion to $100 billion this year alone. Bitcoin's market value is already over $913 billion.
The approval comes after a long wait and some confusion, including a fake announcement on X.
The ETFs' success will depend on factors like fees and liquidity, with some companies already adjusting their proposed fees to attract investors. The hope is that ETFs will not only bring more investment into bitcoin but also pave the way for other innovative crypto products.
SEC Chair Gary Gensler, known for his skepticism towards crypto, surprisingly voted in favor of approving ETFs, stating that it's the most sustainable path forward. However, he restates that bitcoin is a "speculative and volatile asset" also used to fund crime and says that SEC does not support bitcoin.
While this approval is a significant step for bitcoin, some critics still argue that it's a historic mistake and that bitcoin and crypto have no legitimate use.
We also reported that as 2024 began, bitcoin reached its highest point since April 2022, stopping at $45,922 and marking a remarkable 156% gain in the previous year.
