US SEC finally approves Bitcoin ETFs after fiasco over fake X post. Here’s what it means for investors

Tech US SEC finally approves Bitcoin ETFs after fiasco over fake X post. Here’s what it means for investors In bizarre turn of events, the US SEC has finally approved Bitcoin ETFs, making it much easier for people to invest in the digital asset, without having to deal with any of intricacies of crypto investing.

Experts believe this will drive Bitcoin's price to $100,000 FP Staff January 11, 2024 12:28:08 IST In bizarre turn of events, the US SEC has finally approved Bitcoin ETFs, making it much easier for people to invest in the digital asset, without having to deal with any of intricacies of crypto investing.

Experts believe this will drive Bitcoin's price to $100,000 In a groundbreaking move, the US Securities and Exchange Commission (SEC) has officially approved the first US listed exchange traded funds (ETFs) to track Bitcoin. The decision marks a pivotal moment for the world’s largest cryptocurrency and the broader crypto industry, making it more accessible to mainstream investors.

The approval followed a rather bizarre 24 hours, beginning with a X post from the SEC’s account announcing the ETF approval, causing a spike of over $1,000 in Bitcoin’s price. Subsequently, the SEC stated that the post was “fake” due to a compromised account. Nevertheless, on Wednesday, the SEC officially approved the ETFs, emphasizing its scepticism about cryptocurrencies.

Related Articles Cryptocurrencies rally, Bitcoin surges past $45,000 for the first time since April 2022 US SEC's X account gets hacked, falsely posts about crypto, raising concern over fake news on platform What are ETFs and how will they impact Bitcoin ETFs, or exchange traded funds, are investment funds that hold a collection of assets, offering investors exposure to a diversified portfolio.

In the case of Bitcoin ETFs, they will hold actual Bitcoin rather than stocks, providing an avenue for investors to gain exposure to the cryptocurrency without directly owning it. The SEC’s approval of spot Bitcoin ETFs is expected to simplify the investment process for individuals, allowing them to invest in Bitcoin through traditional brokerage accounts rather than navigating complex crypto related procedures, such as wallets.

This move is anticipated to bridge the gap between mainstream investors and the once niche world of cryptocurrencies. What does SEC’s approval mean The SEC has given the green light to 11 ETFs for Bitcoin in the US, a significant development for major fund managers such as BlackRock, Fidelity Investments, and Invesco, who will manage these funds.

While some ETFs are set to commence trading soon, the SEC’s decision has triggered intense competition for market share among these funds. Despite approving the ETFs, the SEC maintains a sceptical stance on cryptocurrencies. Chairman Gary Gensler cautioned investors about the risks associated with Bitcoin and crypto related products, emphasizing that the approval does not imply endorsement.

The approval is viewed as a major win for institutional players in the crypto space. Impact on Bitcoin prices, and market predictions The announcement comes after nearly two years of uncertainty and turmoil in the crypto market. The anticipation of regulatory approval for Bitcoin ETFs has contributed to a 70 per cent increase in Bitcoin’s price since October.

Some Analysts suggest that the ETFs could attract significant capital, with estimations ranging from $50 billion to $100 billion in 2024 alone, potentially driving Bitcoin’s price to $100,000. However, common sense dictates that any such prediction should be taken with a massive grain of salt. While optimistic predictions abound, some analysts emphasize the potential stabilization of crypto prices with the introduction of ETFs, broadening their use and reaching a wider audience.

However, concerns remain about the volatility of crypto prices and the associated risks, particularly for mainstream investors who may be less familiar with the unpredictable nature of the market. In addition to its impact on Bitcoin, the SEC’s decision has also fueled speculation around Ethereum, the second most popular cryptocurrency, as fund managers may consider creating ETFs for it in the future.

(With inputs from agencies) Join our Whatsapp channel to get the latest global news updates Published on: January 11, 2024 12:23:25 IST TAGS: Bitcoin Cryptocurrency Us Sec.