In a landmark decision, the Securities and Exchange Commission (SEC) has announced that it will allow Wall Street firms to offer exchange-traded funds (ETFs) that own Bitcoin, making it easier for investors to trade the cryptocurrency.
The decision, which was made public on Wednesday, could potentially make Bitcoin more mainstream and remove some of the stigma associated with it. The crypto industry has hailed the move as a major victory, with Coinbase CEO Brian Armstrong calling it “a monumental step forward for the crypto industry.”
Under the new rules, ETFs that own Bitcoin will be able to be bought and sold on financial markets in the same way as mutual funds or company shares. This means that retail investors will be able to invest in Bitcoin through these ETFs without having to go through cryptocurrency exchanges or other intermediaries.
The SEC’s decision comes after a long period of deliberation and controversy over the issue. The regulator had previously rejected several applications for Bitcoin ETFs, citing concerns about market manipulation and investor protection. However, in a statement on Wednesday, SEC Chair Gary Gensler said that the commission had “carefully considered the issues and believe that the proposed rule change is consistent with the protection of investors and the public interest.”
The move is likely to be welcomed by institutional investors, who have been increasingly interested in Bitcoin and other cryptocurrencies in recent years. It could also help to increase the adoption of Bitcoin and other cryptocurrencies among mainstream investors, as well as drive further innovation in the crypto space.
However, the decision has not been without controversy. Some critics have expressed concerns about the potential risks of investing in Bitcoin, including its volatility and lack of regulation. Others have raised concerns about the potential for market manipulation and fraud.
Despite these concerns, the SEC’s decision is a significant step forward for the crypto industry, and is likely to have a major impact on the future of Bitcoin and other cryptocurrencies. As the crypto market continues to grow and mature, it is likely that we will see more and more mainstream investors and institutions entering the space.