The United States Securities and Exchange Commission (SEC) has approved proposals for 11 spot Bitcoin exchange-traded funds (ETFs).
This allows everyday traders to gain exposure to Bitcoin without holding any of the cryptocurrency, and has been widely celebrated as a positive step forward for crypto adoption by the web3 community. At the time of writing, Bitcoin has risen to above $46,400, and Ethereum to above $2,530.
Trading of these spot Bitcoin ETFs is expected to commence tomorrow (January 12).
BREAKING: @SECGov has approved spot Bitcoin ETFs. pic.twitter.com/MjAGnH6I8v
— NFT Plazas (@NFTPlazas) January 10, 2024
What is an ETF?
An ETF is an investment fund that is traded on stock exchanges. These funds can hold stocks, currencies and other financial products – and now, for the first time, they can hold Bitcoin.
11 spot Bitcoin ETFs were proposed by a variety of investment banks and financial institutions. All 11 have been approved, and they’ll be competing on fees to gain a foothold in this newly-emerging market, with hundreds of millions of dollars of seed funding already lined up.
What does this mean for me?
The approval of spot Bitcoin ETFs is seen by many in the community to be a recognition of Bitcoin as a legitimate financial instrument – though SEC Chair Gary Gensler has stated that this is not the case, remarking that whilst the SEC has approved Bitcoin ETFs, the Commission “did not approve or endorse Bitcoin.”
In short? Crypto prices are expected to be especially volatile in the coming days, and this could have a knock-on effect on the floor prices of popular NFT collections.
Whilst this news has sparked a new air of excitement in the industry, remember to stay safe, always do your own research, and trade carefully!
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
