Jan 11, 2024: Bitcoin witnessed an uptick in its value, accompanied by a rise in crypto-related stocks, after the U.S. Securities and Exchange Commission (SEC) granted approval for the first exchange-traded funds (ETFs) tracking the spot price of the digital asset.
As of 06:44 ET (11:44 GMT), Bitcoin had surged by 3.0% to $46,929.1. Concurrently, stocks associated with the cryptocurrency, including exchange platform Coinbase (NASDAQ:COIN) and crypto miners Marathon Digital (NASDAQ:MARA), Cipher Mining (NASDAQ:CIFR), and Riot Platforms (NASDAQ:RIOT), experienced positive movements.
The SEC’s decision, which approved 11 applications from various issuers, including BlackRock (NYSE:BLK), Fidelity, and Grayscale, is expected to have far-reaching implications for the broader crypto industry. This move allows investors to gain exposure to Bitcoin through a spot Bitcoin ETF without directly owning the digital asset.
While proponents anticipate increased demand for Bitcoin, critics have expressed concerns about ETFs potentially encouraging retail traders to invest in a sector known for fraud-related issues and significant volatility.