Bitcoin and Ethereum prices jumped on Wednesday after U.S. regulators approved the first exchange-traded funds (ETFs) for BTC, tracking the leading cryptocurrencies, News About Nigeria reports.
Bitcoin rallied over $1,000 to $47,972 following the ETF news before easing to $45,573 as of this morning, 8:30 (WAT), Thursday, per CoinMarketCap data. Ethereum also surged to $2,616.
Recall that a leaked tweet indicated that the Securities and Exchange Commission (SEC) greenlit a bitcoin ETF on Tuesday.
The SEC then officially confirmed the landmark nod after months of anticipation. Numerous fund managers, like BlackRock and Fidelity, will now offer crypto ETFs for investment.
The ETFs approvals let mainstream investors access crypto through traditional brokerage accounts.
In a TV interview, JPMorgan CEO Jamie Dimon doubled down on his persistent criticism of Bitcoin, saying the digital asset “doesn’t have value”. He, however, lauded the ETFs initiative.
Despite Dimon’s view, the US securities regulator has approved the first US-listed exchange-traded funds (ETFs) to track bitcoin, a watershed moment for the world’s largest cryptocurrency and the broader crypto industry.
The move opens crypto investing to millions of new participants without needing direct Bitcoin purchases.
ETFs hold underlying assets, allowing exposure via simple stock trades. A gold ETF, for instance, tracks bullion prices.
When asked about the initiative, SEC Chair Gary Gensler said “guards against fraud and manipulation” in approving bitcoin-based assets.
Nonetheless, the SEC’s blessing bolsters Bitcoin’s mainstream appeal. As providers roll out competing products, the bitcoin ETF space promises fierce rivalry.
Despite Bitcoin’s volatility, supporters see a vast upside in widening access.
However, risks remain as crypto evolves. China just declared all transactions illegal.
While regulators proceed cautiously, the Bitcoin ETF nod marks a milestone. Investors cheered the move, bidding up top cryptocurrencies. The new vehicles will further integrate digital assets into traditional finance.
