US Securities Regulator Gives Green Light to Bitcoin ETFs from Major Players

In a historic move for the cryptocurrency market, the U.S. securities regulator has granted approval for the first U.S.-listed exchange-traded funds (ETFs) tracking bitcoin, as announced by SEC Chair Gary Gensler on Wednesday. This development marks a significant milestone for the world's largest cryptocurrency and the broader crypto industry.

The regulatory nod includes applications from prominent entities such as BlackRock, Ark Investments, 21Shares, Fidelity, Invesco, and VanEck, among others, as outlined in an official notice on the regulator's website. Trading for some of these ETFs is anticipated to commence as early as Thursday.

These ETFs, a decade in the making, are poised to reshape the landscape for bitcoin by providing both institutional and retail investors with exposure to the cryptocurrency without the need to directly hold it. This approval is a substantial boost for the crypto industry, which has faced challenges due to various scandals.

According to analysts at Standard Chartered, the ETFs could attract between $50 billion to $100 billion in the current year alone, potentially propelling the price of bitcoin to reach as high as $100,000. While other industry experts forecast a more conservative estimate of approximately $55 billion in inflows over the next five years, the consensus is that this development will significantly impact the market.

Andrew Bond, Managing Director and Senior Fintech Analyst at Rosenblatt Securities, remarked, "It's a huge positive for the institutionalization of bitcoin as an asset class. The ETF approval will further legitimize bitcoin."

The anticipation of ETF approval has already fueled a more than 70% surge in the price of bitcoin in recent months. This regulatory green light is expected to pave the way for increased mainstream adoption and investment in the cryptocurrency, reinforcing its status as a credible asset class.