What is a spot bitcoin ETF, and how will its approval by the SEC impact investors?
CBSN
The Securities and Exchange Commission on Wednesday granted approval to spot bitcoin exchange-traded funds, or ETFs, backed by Wall Street, a key regulatory step expected to drive significant investment in the digital currency.
The agency gave the green light to multiple financial firms to offer spot bitcoin ETFs, including asset management giants like BlackRock, Fidelity Investments and Franklin Templeton that cater to retail investors. Until now, only bitcoin futures ETFs had SEC approval. Bitcoin prices have shot up on the SEC's approval of the ETFs, more than doubling since last year, CoinDesk's Bitcoin Price Index shows. Prices for the cryptocurrency had already risen 61% since October on expectations that the SEC planned to grant approval of spot ETF applications, CoinDesk reported.
Here's what to know about spot bitcoin ETFs.
