Bitcoin ETFs earn SEC approval: Details

Bitcoin has granted approval by the Securities and Exchange Commission (SEC) forexchange-traded funds (ETF) a day following false reports.

On Wednesday, SEC Chair Gary Genser declared on the organization's official website that Bitcoin ETFs have been approved.

"Importantly, today’s Commission action is cabined to [exchange traded products] holding one non-security commodity, bitcoin," said Genser in his official statement.

He added, "It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities."

Despite the approval of Bitcoin ETFs, Genser also emphasized that this does not imply that the SEC supports cryptocurrencies.

He seems uneasy about Bitcoin, saying that although other assets, like metals, have obvious purposes for consumers and industry, "in contrast, bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing."

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For bitcoin aficionados, who had hoped that SEC clearance would help legitimize cryptocurrency and entice new investors, Wednesday's news represents a major step forward.

However, this SEC permission does not mean that all cryptocurrencies can now be traded on the stock market. There are currently just 11 approved Bitcoin ETFs, which include the Grayscale Bitcoin Trust and the iShares Bitcoin Trust from BlackRock.

What are Bitcoin ETFs?:

ETFs are collections of several securities that can be traded as a single lot on the stock market, allowing you to diversify your holdings and reduce risk.

Investors can now invest in Bitcoin without having to buy the cryptocurrency directly by purchasing exchange-traded funds (ETFs) that include the cryptocurrency.

It should be emphasized that unlike futures ETFs, which use futures contracts to follow Bitcoin values, these are spot ETFs, which hold Bitcoin in real-time.