The United States Securities Exchange Commission on Wednesday approved the first U.S.-listed exchange-traded funds to track Bitcoin.
Notwithstanding warnings from several authorities and investor advocates over the products’ hazards, the Securities and Exchange Commission said it had accepted 11 applications, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck.
According to issuers, the majority of the goods are anticipated to go live on Thursday, sparking a competitive race for market domination.
The ETFs, which have been in development for ten years, are revolutionary for Bitcoin because they provide investors exposure to the biggest cryptocurrency in the world without requiring them to own it directly. They provide the scandal-plagued cryptocurrency sector a significant boost.
Analysts at Standard Chartered predicted last week that the ETFs may bring in $50 billion to $100 billion alone this year. According to some forecasts, during five years, inflows will be closer to $55 billion.
According to CoinGecko, the market capitalization of Bitcoin was over $913 billion on Wednesday, and the Investment Company Institute states the total net assets of U.S. exchange-traded funds (ETFs) as of December 2022 were $6.5 trillion.
The approvals come a day after an unauthorized individual claimed that the SEC had allowed the items for trade in a fictitious post that was posted on the agency’s social media account, X. The organization swiftly removed and denied the post.
