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New Delhi: The US Securities and Exchange Commission has approved the 11 applications for the issuance of bitcoin-indexed exchange-traded funds (ETFs), SEC chief Gary Gensler said in a post on social media platform X. Exchange-traded funds are like mutual funds that comprise a money pool. However, unlike MFs ETFs are traded on stock exchanges. What are crypto ETFs? ETFs track a specific market instrument such as a stock exchange index, bond or security. These can also be indexed to commodities such as gold. Bitcoin ETFs are indexed to cryptocurrencies, the most popular being the bitcoin. Through ETFs, investors can track the same returns as cryptocurrencies without actually going through the hassle of maintaining a digital coin wallet, the CNBC reported. Which bitcoin ETFs have been approved by SEC? The SEC approved the following ETFs: BlackRock Ark Investments/ 21Shares Fidelity Invesco VanEck To be sure this is not the first time that the SEC has approved a bitcoin ETF. However, Wednesday was the first time the SEC approved applications to operate spot bitcoin ETFs. Spot ETFs track the price changes in a cryptocurrency, unlike bitcoin futures ETF which are related to buying and selling of cryptocurrencies at a pre-fixed price.
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