The U.S. Securities and Exchange Commission (SEC) denies that approval has been granted for the introduction of listed bitcoin funds, also known as bitcoin ETFs. According to SEC Chairman Gary Gensler, the regulator’s X-account has been “compromised,” and an “unauthorized” announcement has been made.
The SEC was purportedly said to have given the green light to the funds on the account earlier today, but Gensler clarifies that this is not the case.
These funds could make the cryptocurrency more accessible to a broader group of investors, potentially significantly boosting the demand and, consequently, the value of the digital currency, according to experts. The crypto world has been eagerly anticipating approval from the U.S. regulator for some time.
Investment Product
This involves an investment product that moves in sync with the digital currency’s price. Investors would not need to directly purchase and store bitcoins in a digital wallet. Instead, they would have the option to indirectly invest in bitcoins through these funds.
Several major financial companies, including the world’s largest asset manager, BlackRock, had submitted applications to establish these funds. Approval would potentially enable investments worth billions of dollars in cryptocurrencies. Experts have also noted that the approval of bitcoin ETFs could enhance the image of bitcoin, often associated with money laundering operations and cybercrime.
Market Manipulation
The SEC has so far blocked the introduction of these trackers out of concern that they could lead to market manipulation. However, judges ruled last year that the regulator should reconsider the approval. The ETF does not differ significantly from similar products that have been in existence for some time.
In New York today, the value of bitcoin was less than $46,000. Yesterday, it reached a level of over $47,000, the first time since April 2022. The world’s most well-known digital currency reached a record level of around $69,000 in November 2021.