Bitcoin exchange-traded funds get approval from U.S. SEC

Bitcoin exchange-traded funds get approval from U.S. SEC

After a head-spinning and bizarre chain of events, U.S. financial regulators have formally approved new bitcoin exchange-traded funds. The move is being heralded as a landmark moment in the history of cryptocurrency and its acceptance into mainstream financial markets.

In its approval announced on Wednesday, the Securities and Exchange Commission (SEC) expressed its long-standing discomfort with cryptocurrencies.

“While we approved the listing and trading of certain spot bitcoin ETP [exchange-traded product] 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,” wrote the agency.

Exchange-traded funds pool assets like gold, stocks bonds and now bitcoin to provide an easy way to invest in something without having to buy the asset itself.

The approval caps off a wild week for the SEC.

A social media account run by the SEC initially made the much anticipated announcement on Tuesday on X, formerly Twitter. But moments later, it repealed that approval saying its X account had been “compromised.”

“The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” said Gary Gensler, the chair of the commission.

A preliminary investigation by the social media company X found that compromise was not due to any breach of X’s systems.

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