US regulators approve first bitcoin ETFs in win for Wall Street

euronews.com:

The Securities and Exchange Commission (SEC) on Wednesday reluctantly approved the first exchange-traded funds that hold bitcoin, saying it is still deeply sceptical about cryptocurrencies and that its decision did not mean it approves or endorses bitcoin.

The SEC said it gave the green light to 11 exchange-traded funds (ETFs) for bitcoin even though it only faced a deadline for one application. The agency said that would provide competition and a “level playing field.”

Bitcoin ETFs could open the door to cryptocurrencies to many new investors who don’t want to take the extra steps involved in buying actual bitcoin.

It's a major win for Wall Street, particularly trillion-dollar fund managers like BlackRock, Fidelity Investments and Invesco that have pushed hard to get the SEC to approve their applications.

It's also a win for the cryptocurrency industry, which has needed a win after nearly two years of turmoil that has resulted in the failure of several crypto firms, most notably FTX in November 2022.

The SEC's approval, however, was lukewarm at best. Gary Gensler, the agency's chairman, has repeatedly said cryptocurrencies need more regulation and investor protections.

“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” Gensler said.

Other commissioners expressed alarm that the SEC agreed to approve the funds.

“I am concerned that these products will flood the markets and land squarely in the retirement accounts of US households who can least afford to lose their savings to the fraud and manipulation that appears prevalent in the spot bitcoin markets,” Commissioner Caroline Crenshaw said in her dissent.

An exchange-traded fund is an easy way to invest in