The U.S. securities regulator on Wednesday approved the first U.S-listed exchange traded funds (ETFs) to track bitcoin, its Chair Gary Gensler said, in a watershed for the world's largest cryptocurrency and the broader crypto industry.
The agency approved applications, including from BlackRock, Ark Investments and 21Shares, Fidelity, Invesco, and VanEck, among others, according to a notice on its website. Some products are expected to begin trading as early as Thursday.
The products - a decade in the making - would be a game-changer for bitcoin, offering institutional and retail investors exposure to the world's largest cryptocurrency without directly holding it, and a major boost for a crypto industry beset by a string of scandals.
Also Read | Bitcoin surpasses $45,000 for first time in nearly two years
Standard Chartered analysts this week said the ETFs could draw $50 billion to $100 billion this year alone, driving the price of bitcoin as high as $100,000. Other analysts have said inflows will be closer to $55 billion over five years.
"It's a huge positive for the institutionalization of bitcoin as an asset class," said Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities. "The ETF approval will further legitimize bitcoin."
{{/usCountry}}"It's a huge positive for the institutionalization of bitcoin as an asset class," said Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities. "The ETF approval will further legitimize bitcoin."
{{/usCountry}}Bitcoin has gained more than 70% in recent months on the expectation ETFs for the asset would be approved.