The new exchange-traded funds, or ETFs, give investors an asset that closely tracks the price of bitcoin.
The Securities and Exchange Commission approved 11 funds from asset managers such as Blackrock, Invesco and Fidelity late Wednesday. The wave of approvals may work in your favor as fund managers seek to attract investors by competing on fees.
Besides being a win for the fund managers, the approvals are also a win for the cryptocurrency industry, which has needed a victory after nearly two years of turmoil, including the failure of several crypto firms, most notably FTX in November 2022.
The SEC’s approval, however, was lukewarm at best. Gary Gensler, the agency’s chairman, has repeatedly said cryptocurrencies need more regulation and investor protections.
“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” Gensler said.
The regulatory greenlight had been anticipated for several months, however, and the price of bitcoin has jumped about 70% since October on the belief that bitcoin ETFs will drive up demand for the cryptocurrency.
Bitcoin rose 2% in early trading Thursday, and trading in the new ETFs was mixed.
Some analysts think that ETFs may help stabilize crypto prices by broadening their use and potential audience. But many remain concerned that crypto ETFs will place too much risk and volatility into Americans’ retirement accounts.
This story is from the January 13, 2024 edition of Techlife News.
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This story is from the January 13, 2024 edition of Techlife News.
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