What does this historical event mean?
The US Securities and Exchange Commission (SEC) has given the green light to 11 spot Bitcoin exchange-traded funds (ETFs).
Today’s landmark approval includes ETFs from major Wall Street asset management firms, from BlackRock to Franklin Templeton (BEN), as well as several more established names in the cryptocurrency world, and is expected to pave the way for attracting major investment flows into digital currencies. .
The SEC’s decision comes after a period of anticipation and speculation in the industry, with more than a dozen companies filing applications to launch these investment products. The move is seen as a turning point that could lead to greater acceptance and integration of Bitcoin into traditional financial markets.
So much so that these ETFs, which begin trading on Thursday, could make Bitcoin a possible global staple. retirement accounts, such as 401(k) or IRA, and pension planswhich provided it with wide recognition in the world’s largest financial market.
Specifically, the SEC has approved the following: 11 ETFs funds from different asset managers:
These approved ETFs are expected to provide investors with a more regulated and accessible way to gain exposure to Bitcoin, which could lead to wider adoption and greater stability in the cryptocurrency market.
What is an ETF and how does it work?
A ETF, or exchange-traded fund, is a type of publicly traded investment that represents ownership of a collection of assets, such as stocks, bonds, or commodities. ETFs allow investors to buy and sell these assets on the secondary market, providing an efficient and diversified way to invest in a variety of assets without directly owning them. This makes investing easier for individual investors and provides liquidity similar to that of stocks.
“An ETF is an exchange-traded fund that replicates the functioning of some market component/instrument. Just like company shares are financial instruments, there are also ETFs that can be traded in a very similar way,” Hernan Gonzalez explained to iProUP. , spokesperson for the non-governmental organization Bitcoin Argentina.
“The reason everyone is focused is because of its characterization: there have been ETFs for Bitcoin, Ether and other crypto futures for years, but until now (until today) there have been none for Bitcoin in spot or cash,” Gonzalez added.
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