The US Securities and Exchange Commission (SEC) has approved 11 spot Bitcoin exchange-traded funds (ETFs), which will begin trading on January 13.
ETFs are pooled investments that operate like mutual funds, but they can be bought and traded on the stock exchange like regular shares.
The approval of these ETFs will allow investors to invest in Bitcoin without having to buy or hold any Bitcoin. However, the SEC has warned that Bitcoin is a speculative and volatile asset that is also used for illicit activities.
The SEC has applied existing rules and standards to the purchase and sale of Bitcoin ETFs, but it has not approved or endorsed crypto trading platforms or intermediaries. SEC Chair Gary Gensler has cautioned investors to remain cautious about the risks associated with Bitcoin and products whose value is tied to crypto. The approval of these ETFs is a significant development for the crypto industry, as it is expected to open new flows of investments from wealth managers and everyday traders