US SEC approves Bitcoin ETFs amid cautious optimism

livemint.com:

New Delhi: In a landmark development for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) has greenlit the establishment of Bitcoin exchange-traded funds (ETFs) by investment firms, signalling a potential revival for the world’s largest cryptocurrency token by market capitalization. 

This decision allows 11 investment firms, including BlackRock, Fidelity, and Franklin Templeton to list Bitcoin-based ETFs on major US exchanges, including Nasdaq and the New York Stock Exchange, as early as Thursday.

This move is expected to breathe new life into Bitcoin and the wider crypto industry, which has been reeling from declining token prices, failed projects, and the collapse of exchanges since its peak in November 2021. 

Following its all-time high of nearly $69,000 in November 2021, Bitcoin experienced a series of downturns, dropping to around $16,000 within a year. Unlike popular expectations though, Bitcoin prices did not surge upon the announcement. Eight hours since the SEC announcement, Bitcoin traded at around $46,300, down $1,000 down from its recent high.

A recent note from analyst Geoff Kendrick, head of digital assets at Standard Chartered, said that the ETFs may attract $100 billion in institutional investments in Bitcoin by the end of this year, and also projected a surge in Bitcoin's price to $100,000 this year and $200,000 by next year.

Bitcoin ETFs offer a more accessible route for investors to engage with the crypto asset, bypassing the complexities of purchasing Bitcoin directly. 

Yet, there are sceptics too. Jamie Dimon, chief executive of US bank JP Morgan, in the lead-up to the ETF announcement said that, “The actual use cases (of Bitcoin) are sex trafficking, tax avoidance,