The SEC has finally said yes to bitcoin ETFs

After years of waiting, the US securities regulator has approved the first exchange traded funds (ETFs) that track the price of bitcoin. This is a big deal for the crypto industry, as it will make it easier for investors to buy and sell bitcoin without having to deal with the hassle of owning the actual coins.

The SEC approved 11 applications from big fund managers like BlackRock, Fidelity, and Invesco, among others. Some of the ETFs are expected to start trading as soon as Thursday.

The approval came after a tweet from the SEC’s account on Tuesday announced the decision a day early, but was later deleted and called “unauthorized”. The SEC said its account was hacked and that it was investigating the incident.

The SEC also warned investors to be careful about the risks of investing in bitcoin and crypto-related products, and said that its approval did not mean that it endorsed bitcoin.

Bitcoin has surged more than 70% in recent months on the expectation of the ETF approval, and hit its highest level since March 2022 earlier this week. Analysts predict that the ETFs could attract billions of dollars into the crypto market and push the price of bitcoin even higher.

Dennis Kelleher, CEO of investor advocacy think tank Better Markets, warned that bitcoin was still vulnerable to crypto fraudsters and said approving the ETFs was a “historic mistake.”

“The SEC’s action today has changed nothing about this worthless financial product: bitcoin and crypto still have no legitimate use,” he said.

For whom should it be a good move and for whom not?