2024-01-11 03:27:00
Our file: ETFs, a successful investment vehicle
On Wednesday, the SEC gave authorization to eleven different companies to launch their own product, including major Wall Street houses like Fidelity and BlackRock, according to the document published on the regulator’s website.
An important step for the adoption of cryptocurrencies
The market had already reached a milestone, in October 2021, with the listing of the first ETF invested not directly in bitcoins but in futures contracts linked to the cryptocurrency.
Until now, access to digital currencies required opening an account on a cryptocurrency exchange platform and converting a traditional currency (issued by a central bank), such as the dollar.
The market has been speculating for several weeks on the approval of this new ETF, clearly accentuating the volatility of bitcoin, already known for its brutal variations.
On Tuesday, the queen digital currency briefly soared to its highest level in 22 months, at $47.914 per unit, following the publication of what turned out to be a false publication on X (formerly Twitter) of the SEC, announcing the approval of the bitcoin ETF. The SEC then indicated that his account had been hacked, the time it took to post the message.
About it: Why the Bitcoin ETF is generating so much excitement
A game-changing case law
The stock market policeman had already rejected, on numerous occasions, marketing requests for similar products in the past, but a recent development has changed the situation. At the end of October, a federal appeals court in Washington confirmed that the SEC was not justified in refusing the approval of its bitcoin ETF to asset manager Grayscale. The president of the SEC, Gary Gensler, although known for his reservations regarding cryptocurrencies, then recognized that the regulator was now required to take this case law into account.
The arrival of an ETF is “a turning point for digital assets and signals a move towards mainstream adoption and (their) legitimacy,” commented Thomas Tang, vice president at private equity firm Ryze Labs. “By their mere existence within a regulated framework, bitcoin ETFs will give institutional credibility to digital assets.”
Gary Gensler has often compared the world of cryptocurrencies to the “wild west”. During a hearing in the US Senate in July, he warned the general public once morest “these highly speculative”, unregulated and risky assets.
Read more: Why Bitcoin might experience a new boom in 2024
Many leading financiers and big bosses have also publicly expressed their skepticism, or even their opposition to these digital currencies. “The only real use” of cryptocurrencies is that they benefit “criminals, drug traffickers”, for “laundering, tax evasion”, declared, in early December, the CEO of the largest bank of the world, JPMorgan Chase, Jamie Dimon. “If I were the government, I would put an end to it.”
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