SEC Greenlights Spot Bitcoin ETFs

Posted on January 22nd, 2024 at 11:57 AM

From the desk of Jim Eccleston at Eccleston Law 

In a groundbreaking move, U.S. regulators have approved the first exchange-traded funds (ETFs) directly investing in Bitcoin.

The Securities and Exchange Commission (SEC) has given the green light to industry giants such as BlackRock, Invesco, and Fidelity, as well as smaller competitors like Valkyrie, to commence trading. This landmark decision, signaling a departure from over a decade of opposition, is expected to impact the $1.7 trillion digital asset sector significantly, providing broader access to the leading cryptocurrency on Wall Street and beyond.

According to Campbell Harvey, a finance professor at Duke University, the ETF's approval simplifies the process of incorporating crypto assets into investment portfolios, eliminating concerns about custody complexities. This development is seen as a maturation milestone for the crypto industry, indicating a shift towards increased regulatory acceptance and a closer alignment with traditional financial markets.

As reported by ThinkAdvisor, the SEC's decision follows a notable legal victory for Grayscale Investments, which successfully challenged the SEC's rejection of its Bitcoin trust conversion into an ETF, emphasizing the need for consistent regulatory treatment.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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