The US SEC approves bitcoin ETFs, 11 funds to be listed on stock exchange

The SEC said that existing rules and standards will be applied to the purchase and sale of bitcoin ETFs. (Representational Image)

The United States Securities and Exchange Commission (SEC) has accepted the applications of 11 spot coin ETFs. The Exchange-Traded Funds (ETF) are pooled investments that operate like mutual funds.

The main difference is that they can be bought and traded on the stock exchange like regular shares. ETFs can be assigned to one particular commodity or can be structured with a diverse set of investments.

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This will allow Bitcoin investors to dabble in cryptocurrency without having to buy or hold any Bitcoin. Despite the approval, the SEC warned that bitcoin is, "primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing."

In a statement, SEC Chair Gary Gensler said that while the SEC, "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."

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The SEC said that existing rules and standards will be applied to the purchase and sale of bitcoin ETFs but the approval itself, "does not approve or endorse crypto trading platforms or intermediaries, which, for the most part, are non-compliant with the federal securities laws and often have conflicts of interest."