The US Securities and Exchange Commission (SEC) has finally approved a number of spot Bitcoin exchange-traded product (ETP) shares and with the decision, the world’s largest cryptocurrency has joined the global financial system.
The decision will make around a dozen spot Bitcoin ETFs available to investors, such as those from Grayscale, Fidelity and BlackRock.
“While we approved the listing and trading of certain spot bitcoin ETP shares, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” SEC Chair Gary Gensler said in a statement late on Wednesday.
For the last 10 years, the SEC denied all attempts to create a Bitcoin ETF.
Gensler said that the decision should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.
“Nor does the approval signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws,” Gensler informed.
The vast majority of crypto assets are investment contracts and thus subject to the federal securities laws.
The sponsors of bitcoin ETPs will be required to provide full, fair, and truthful disclosure about the products.
“While these disclosures are required, it is important to note that today’s action does not endorse the disclosed ETP arrangements, such as custody arrangements,” said the Commission.
These products will be listed and traded on registered national securities exchanges.
“We will monitor them closely to ensure that they are enforcing those rules,” said the SEC.
The existing rules and standards of conduct will apply to the purchase and sale of the approved ETPs.
Earlier this week, the US SEC saw its X account hacked for a brief time, with a post claiming it has approved listings for Bitcoin exchange-traded funds (ETFs).
Gensler later clarified in a post on his X account that the agency’s account was “compromised, and an unauthorised tweet was posted”.
