US securities regulators gave the green light Wednesday to a group of bitcoin exchange-traded funds, a keenly anticipated decision expected to boost the cryptocurrency.
Regulators approved proposals for 11 ETFs to list on leading exchanges including the New York Stock Exchange “on an accelerated basis,” the Securities and Exchange Commission said in a 22-page order.
Exchange-traded funds are traded on public markets, granting investors exposure to price movements in asset prices without taking direct ownership of the underlying assets.
The funds themselves, however, do invest in the digital currency.
The authorization of the ETFs – which are comparable to stocks or mutual funds as far as accessibility to everyday investors – “represents a pivotal juncture for the digital asset space, signifying a movement towards mainstream legitimacy and acceptance,” said Thomas Tang, vice president of investments at Ryze Labs.
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“This development comes after years of regulatory scrutiny and market volatility, marking a notable shift in the perception and utilization of digital currencies,” Tang said.
“Bitcoin ETFs, by virtue of their existence within a regulated framework, will infuse a level of institutional credibility into the realm of digital assets.”
(AFP)
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