Regulators are set to decide whether to OK a new bitcoin fund. Here's what investors need to know
U.S. regulators are soon expected to decide whether to approve the first bitcoin exchange-traded fund, a development that could thrust the once niche and nerdy corner of the internet even further into the financial mainstream
NEW YORK — U.S. regulators are soon expected to decide whether to approve the first bitcoin exchange-traded fund, a development that could thrust the once niche and nerdy corner of the internet even further into the financial mainstream.
The regulatory greenlight has been anticipated for several months and the price of bitcoin has jumped about 70% since October.
In a twist perhaps appropriate for the unpredictable crypto industry, a fake tweet from the Securities and Exchange Commission’s account on X Tuesday stated that trading of bitcoin ETFs had been approved.
It had not.
The price of bitcoin swung higher, and then sank when the SEC said no approval had been granted and its account had been hacked.
Here are some things to know about bitcoin ETFs.
WHY ALL THE EXCITEMENT OVER A BITCOIN ETF?
An exchange traded fund, or ETF, is an easy way to invest in something or a group of things, like gold or junk bonds, without having to buy the things themselves. Unlike traditional mutual funds, ETFs trade like stocks, which means they can be bought and sold throughout the day.
Since the inception of bitcoin, anyone wanting to own one would have to buy it. That in turn would mean either having to learn what a cold wallet is or having to open an account at a crypto trading platform like Coinbase or Binance.
A spot bitcoin ETF could open the door to many new investors who don't want to take such extra steps.
The price of bitcoin has already soared in anticipation of the SEC’s approval, with bitcoin trading
Read more on abcnews.go.com
