What does this historical event mean?

The SEC has approved a Bitcoin spot ETF, marking a before and after for the market (Illustration photo by Chesnaught/Getty Images)

The SEC has approved a Bitcoin spot ETF, marking a before and after for the market (Illustration photo by Chesnaught/Getty Images) (Chesnaught via Getty Images)

The US Securities and Exchange Commission (SEC) has given the green light to 11 spot Bitcoin exchange-traded funds (ETFs).

Today’s historic approval includes ETFs from major Wall Street asset management firms, from BlackRock to Franklin Templeton (BEN), as well as many well-known companies in the cryptocurrency world, and is expected to attract major investment flows into digital currencies. The path will be paved. ,

The SEC’s decision comes after a period of anticipation and speculation within the industry, with more than a dozen companies applying to issue these investment products. The move is being considered a turning point that could lead to greater acceptance and integration of Bitcoin into traditional financial markets.

So much so that these ETFs, which begin trading on Thursday, could make Bitcoin a potential major In retirement accounts such as 401(k) or IRAs and pension plansIt gained wide acceptance in the world’s largest financial market.

Specifically, the SEC approved the following 11 ETFs Cash from various asset managers:

These approved ETFs are expected to provide a more regulated and accessible way for investors to gain exposure to Bitcoin, which could lead to increased adoption and greater stability for the cryptocurrency market.

What is an ETF and how does it work?

A etf, or exchange-traded fund, is a type of publicly traded investment that represents ownership of a collection of assets such as stocks, bonds, or commodities. ETFs allow investors to buy and sell these holdings on the secondary market, providing an efficient and diversified way to invest in different assets without directly owning them. It makes it easier for individual investors to invest and provides liquidity similar to stocks.

“An ETF is a listed fund that replicates the functioning of some market component/instrument. Just as there are company shares as financial instruments, there are ETFs, which can be marketed in a very similar way,” Hernán González explains to iProUP. , press officer of the NGO Bitcoin Argentina.

“The reason everyone’s focused on it is its specificity: ETFs have existed for bitcoin futures, ether, and other cryptocurrencies for years, but still (to date) not for bitcoin in spot or cash,” Gonzalez said.

You may also be interested. on video: What lessons does the use of Bitcoin as official currency leave in El Salvador?

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