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SEC approves rule change opening the door to Bitcoin ETF creation

Bitcoin ETFs are coming following the SEC's approval of a regulatory rule change.

TJ Denzer

January 10, 2024 2:55 PM

Andre Francois McKenzie on Unsplash

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The SEC’s approval of rule changes regarding Bitcoin ETFs may mark a major shift for the cryptocurrency towards mainstream financial adoption. The SEC announced its decision this week, following a contentious relationship of regulation with Bitcoin and its proponents. However, with this new decision, various Bitcoin trusts may be set to convert to exchange-traded funds (ETF) in the US, allowing regular investors access and exposure to Bitcoin trading.

The SEC’s decision regarding rule changes for Bitcoin ETF creation was handed down this week, as reported by CNBC. It’s a long-awaited move in the financial industry that will allow financial advisors and institutions to buy exposure to Bitcoin in a regulated and familiar fashion. In fact, several funds are already set to begin trading Thursday, January 11, 2024. A notable one that may be among them is the Grayscale Bitcoin Trust, which aims to list an ETF tied to its $29 billion of Bitcoin holdings. iShares, Fidelity, Ark Invest, and 21Shares have also signaled intention to launch competing funds.

As controversial and volatile as Bitcoin has been, it still remains one of the most popular and highly valued cryptocurrencies around, and its move towards a more mainstream financial status is being touted by financial forces as a major step forward in cryptocurrency legitimacy in financial markets.

"We think that the SEC approval, should we and others get it, is a green light for institutions. We’ve been talking to quite a few of them, and they’re much more interested now that the SEC effectively is paving the way,” Ark Invest CEO Cathie Wood said on CNBC’s Halftime Report.

Even so, this also comes strangely close after the SECGov Twitter was hacked, signaling Bitcoin ETFs had already been approved. SEC Chair Gary Gensler was quick to follow up in saying they had not at the time.

Regardless, it looks like a big move for Bitcoin that will see the cryptocurrency further legitimized in financial systems, even if that seems to fly in the face of its original purpose, which was the establishment of a decentralized currency. Stay tuned for more cryptocurrency news and updates right here at Shacknews.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.