Security

SEC approves bitcoin ETFs

Photo: Adobe Stock

January 11, 2024

The Securities and Exchange Commission officially approved 11 bitcoin exchange traded funds. This occurred despite the fact that an unknown individual hacked the SEC's Twitter account on Jan. 9 and falsely announced the approval of the ETFs, according to a report by Guardian.

With these funds, companies can invest in cryptocurrency without holding it directly. They can also be traded on stock exchanges. Experts believe this will make cryptocurrency more easy for companies and investors to access.

Despite this approval, the SEC remained somewhat skeptical about cryptocurrencies in its official statement.

"Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," Gary Gensler, the agency's chairman, said in a statement.

Other commissioners disagreed with the decision to approve ETFs.

"I am concerned that these products will flood the markets and land squarely in the retirement accounts of U.S. households who can least afford to lose their savings to the fraud and manipulation that appears prevalent in the spot bitcoin markets," Commissioner Caroline Crenshaw said in a statement.

This move could boost bitcoin's price as high as $100,000, according to the report.