The United States Securities and Exchange Commission (SEC) has given approval to eleven spot Bitcoin exchange-traded funds (ETFs) filed by the world's leading asset managers. This is a significant step forward for the cryptocurrency and Bitcoin markets.
Bitcoin exchange-traded funds (ETFs) comply with Exchange Act standards
The Securities and Exchange Commission (SEC) noted in its official filing that each plan included the intention to list and trade shares of a trust that would hold Bitcoin in cash, in whole or in part.
Importantly, the commission came to the conclusion that the suggestions were in compliance with the terms of the Foreign Exchange Act as well as the rules and regulations applicable to national securities exchanges.
To be more specific, the Securities and Exchange Commission (SEC) concluded that the proposals met the standards described in Section 6(b)(5) of the Exchange Act. These requirements include the prevention of fraudulent and manipulative activities and practices in order to protect the public interest and investors.
Bitcoin exchange-traded funds received SEC authorization on January 10. The official SEC filing is also the source.
A significant step forward in the development of the cryptocurrency sector is represented by the acceptance of these Bitcoin exchange-traded funds (ETFs).
Nevertheless, despite the big news, the price of Bitcoin remained unchanged at the $46,200 level, which defied the expectations of some people who predicted that the SEC's decision would immediately lead to a price increase.
However, it should be kept in mind that the real effect of these index funds is expected to be felt over the coming years, during which time both institutional and retail investors will have fully entered the market.
