The Securities and Exchange Commission has allowed financial companies to offer Bitcoin investment product, which is hoped to accelerate the introduction of technology.
On Wednesday, the federal regulatory authorities approved a new financial product that monitors the price of bitcoin , which became a significant moment for the cryptocurrency industry, whose supporters hope to increase investments in this technology.
The Securities and Exchange Commission has allowed 11 annexes to offer bitcoin stock funds, a potentially simple way for people to invest in digital assets. Some of the largest financial companies in the world, including Blackrock and Fidelity assets, have been permitted to offer products known as ETF, which can start bargaining on Thursday on traditional platforms such as NASDAQ.
Approval was seen as a sign that the main financial institutions remain ready to work with digital currencies even after 18 months of market collateral and loud bankruptcies . Since the fall, the price of bitcoin has increased by more than 60 percent, as traders suggest that the approval of new crypto products will provide an industry for the impression of legislative legitimacy by attracting new investments from professional capital managers and amateur traders.
The price of the bitcoin jumped on Tuesday after the official account of X Sec has information about ETF approval, but quickly fell when Gary Gensler, the head of SEC, said the agency's account had been broken.
"This creates a bridge to the traditional financial market," said James Seyfifart, Bloomberg Intelligence, who tracks ETF. - In the long run, I think the money will come. "
Cryptocurrency supporters have been insisted on the introduction of bitcoin-ETF for many years, hoping that it would accelerate the widespread introduction of cryptocurrencies. In 2021, SEC approved the funds that monitor the bitcoin fluctuations without the currency. But the agency claims that the Bitcoin Fund will create high risks for consumers, citing illegal cryptocurrency prices, among other problems.
In court, these arguments were not recognized. In August, SEC lost the Battle with the GrayScale Investments Manager, one of the firms that applied for a product offer, clearing the path to Bitcoin ETF
Soon the bitcoin price quickly took off and reached almost $ 47,000 this month, which is the highest in the bankruptcy series that led to the collapse of the industry in 2022 .
Social networks have raised assumptions about the time of SEC approval. The fake advertisement on Tuesday caused 15 minutes of celebration before Mr. Gensler intervened in X. The official account of X for the safety resources of the platform reported that the agency did not activate the two factor authentication, the usual digital security tool, to protect its account.
In his statement on Wednesday, Mr. Gensler said that the court's decision in August made ETF "the most stable way." But he said that the solution "in no way" should mean that SEC is ready to allow such products related to other cryptocurrencies. He called bitcoin a "speculative, changing asset", which is used to launder money, financing of terrorism and other crimes.
However, the industry celebrated.
"Today is remembered in the history of cryptocurrency," Richard Ten, executive director of Binance, the world's largest crypto company, wrote
Brad Harlinghaus, the executive director of the Ripple crypto company, said X that "the importance of this moment cannot be overestimated." He added: "Today's news is to further legitimize cryptocurrency as a class of assets."
Companies authorized to offer ETF bitcoin, which also include Grayscale, Franklin Templeton and several others, have already started competition for customers. Some of them have settled the management commission this week, which they plan to charge from bitcoin-ETF, trying to reduce competition. Blackrock reduced the commission to 0.25 percent of 0.3 percent.
