Bitcoin ETF Actually Gets SEC Approval

The U.S. Securities and Exchange Commission (SEC) has now actually approved a Bitcoin exchange-traded fund (ETF), less than 24 hours after false reports said it had. It’s a big week for cryptocurrency fans.

On Wednesday, SEC Chairman Gary Genser announced the agency’s approval of a Bitcoin ETF through the agency’s official website. ETFs are a group of different securities that trade in large quantities on the stock market, allowing you to diversify your investments and thereby minimize risk. Now, investors will be able to buy ETFs containing Bitcoin, thus investing in the cryptocurrency without buying it directly.

It should be noted that these are spot ETFs, which actually hold Bitcoin, as opposed to futures ETFs, which track the price of Bitcoin through futures contracts.

However, the SEC’s approval does not mean that the floodgates have opened for all cryptocurrencies in the stock market. Only 11 specific Bitcoin ETFs have been approved, including BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust.

“Importantly, today’s committee action aims to [exchange traded products] Holding a non-security commodity, Bitcoin,” Genser said. “This should in no way indicate that the Commission is willing to approve listing standards for crypto-asset securities. “

Wednesday’s news is a major step forward for cryptocurrency enthusiasts, who had been hoping that SEC approval would help legalize cryptocurrencies and encourage new investors.

However, despite the approval of the Bitcoin ETF, Genser emphasized that this does not mean that the SEC recognizes the cryptocurrency. In fact, he seemed worried about Bitcoin, saying that while other assets such as metals have obvious consumer and industrial uses, “Bitcoin, by contrast, is primarily a speculative, volatile asset that is also used illegally.” activities, including ransomware, money laundering, sanctions evasion, and terrorist financing.”

Genser further stated that the SEC will not evaluate the merits of the assets in ETFs and is only obligated to approve applications if they comply with relevant laws and agency rules.

“While we have approved the listing and trading of certain spot Bitcoins [exchange traded product] “With today’s stock, we are not approving or endorsing Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to cryptocurrencies,” Genser said.

The news comes just one day after the SEC’s hacked Twitter/X account published a false post claiming that a Bitcoin ETF had been approved. This briefly caused Bitcoin’s value to fluctuate, with prices surging after fake news emerged, then falling back after a correction.

The SEC has previously said that any announcements such as approval of a Bitcoin ETF would be published on its website before being listed in the Federal Register, rather than being first disclosed on social media. The agency is currently working with the FBI to investigate the hack.