'Watershed moment' for crypto as SEC approves 11 spot bitcoin ETFs
'Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,' the SEC chair said.
The Securities and Exchange Commission said it approved applications from BlackRock, Grayscale, Ark Investments/21Shares, Fidelity, Invesco and VanEck among others, despite the regulator's risk warnings of the asset.
The move was long awaited by the cryptocurrency community, which has seen previous attempts to launch this style of product shot down by the regulator.
In a statement, SEC chair Gary Gensler addressed the failed submission for 20 bitcoin trackers last year, which he said were likened to the now approved applications materially.
However, he said that «based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares».
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Gensler said that the SEC was «merit neutral» when it comes to particular companies and assets, but he still warned about the risks of cryptocurrencies.
«Though we are merit neutral, I would note that the underlying assets in the metals ETPs have consumer and industrial uses, while in contrast bitcoin is primarily a speculative, volatile asset that is also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing,» he said.
Gensler continued: «While we approved the listing and trading of certain spot bitcoin ETP shares today, 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."
The announcement came after a
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