The United States Securities and Exchange Commission (SEC) approved proposals for 11 spot bitcoin exchange-traded funds (ETFs).
This allows everyday traders to gain exposure to bitcoin without holding any cryptocurrency, and has been widely celebrated as a positive step towards cryptocurrency adoption by the web3 community. At the time of writing, bitcoin has risen to over $46,400 and ethereum to over $2,530.
Trading of these spot bitcoin ETFs is expected to begin tomorrow (January 12).
What is an ETF?
An ETF is an investment fund that is listed on stock exchanges. These funds can hold stocks, currencies and other financial products and now, for the first time, they can hold bitcoin.
A variety of investment banks and financial institutions proposed 11 spot bitcoin ETFs. All 11 have been approved and will compete on rates to gain a foothold in this emerging market, with hundreds of millions of dollars of seed funding already in place.
What does this mean to me?
Many in the community consider the approval of bitcoin spot ETFs to be a recognition of bitcoin as a legitimate financial instrument, although SEC Chairman Gary Gensler has stated that this is not the case, noting that while the SEC has approved bitcoin ETFs, the Commission “did not approve or endorse bitcoin.”
Soon? Cryptocurrency prices are expected to be especially volatile in the coming days, and this could have a knock-on effect on the floor prices of popular nft collections.
While this news has sparked a new air of excitement in the industry, remember to stay safe, always do your own research, and operate carefully.
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
Director of operations at nft Plazas. Bullish on web3. Competitive soul.
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