The US securities regulator on January 10, 2024 approved the first US-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world’s largest cryptocurrency and the broader crypto industry. The Securities and Exchange Commission said it approved 11 applications, including from BlackRock, Ark Investments/ 21Shares, Fidelity, Invesco and VanEck, despite warnings from some officials and investor advocates that the products carried risks.
Most of the products are expected to begin trading on January 11, 2024, issuers said, kicking off a fierce competition for market share. A decade in the making, the ETFs are a game-changer for bitcoin, offering investors exposure to the world’s largest cryptocurrency without directly holding it. They provide a major boost for a crypto industry beset by scandals. Some regulatory experts believe the bitcoin ETFs could also pave the way for other innovative crypto products. Several issuers, for example, have filed for ETFs tracking either, the second-largest cryptocurrency. “Once the dam has been breached, it’s going to be really hard for the SEC to continue its ‘just say no to crypto’ approach,” said Jim Angel, associate professor at Georgetown’s McDonough School of Business.
Source: IBP