Bitcoin in the US can be traded as easily as stocks and mutual funds|Jonathan Cutrer|CC BY-NC 2.0
Just a day after saying that it erroneously posted that national exchanges could list bitcoin exchange-traded funds (ETFs), the US Securities and Exchange Commission (SEC) yesterday voted to allow the same.
In a landmark move integrating cryptocurrency into the traditional financial system, the SEC will allow mainstream investors to trade bitcoin as easily as stocks and mutual funds—via their regular brokerage accounts.
Known as spot bitcoin ETFs, the investor purchases shares in the ETF, which directly holds bitcoins as the underlying asset.
The move follows speculations of regulatory approval, driving the price of bitcoin to its highest level in about two years, just below $46,000.
Notable asset managers, including Fidelity Investments, ARK Investment Management, Invesco, Bitwise Asset Management, and Grayscale Investments, have received approval for their ETF applications.
Critics argue that this approval could set a precedent for other crypto-asset ETFs and make investor protection more challenging for the SEC.