The US Securities and Exchange Commission (SEC) has approved the use of spot bitcoin ETFs. The approval includes ETFs from major Wall Street asset management firms, from BlackRock to Franklin Templeton (BEN), Grayscale, Fidelity, among other best-known companies in the world of cryptocurrencies.
With this step it is expected that the path is facilitated to attract important investment flows towards digital currencies.
“While today we approve the listing and trading of certain bitcoin ETP spot shares, we do not approve or endorse Bitcoin“, made clear the president of the SEC, Gary Gensler, it’s a statement. “Investors should be cautious of the myriad risks associated with bitcoin and products whose value is linked to cryptocurrencies.”
With this step, investors can now buy and sell or gain exposure to bitcoins on various brokerages, through mutual funds, on national stock exchanges, through peer-to-peer payment apps, on non-compliant crypto trading platforms, and of course, through the Grayscale Bitcoin Trust. Today’s action will include certain protections for investors:
First of all, Sponsors of bitcoin ETPs will be required to provide full, fair and truthful disclosure about the products. Investors in any listed and traded bitcoin ETP will benefit from the disclosures included in public registration statements and required periodic filings. While these disclosures are mandatory, it is important to note that today’s action does not support disclosed ETP arrangements, such as custody agreements.
In second place, These products will be listed and traded on registered national stock exchanges. These regulated exchanges must have rules designed to prevent fraud and manipulation, and we will monitor them closely to make sure they enforce those rules. Furthermore, the Commission will thoroughly investigate any fraud or manipulation in the securities markets, including systems using social media platforms. These regulated exchanges also have rules designed to address certain conflicts of interest, as well as to protect investors and the public interest.
Additionally, existing rules and standards of conduct will apply to the purchase and sale of approved ETPs. This includes, for example, Regulation of Best Interest when brokers recommend ETPs to retail investors, as well as a fiduciary duty under the Investment Advisers Act for investment advisers. Today’s action does not approve or endorse cryptocurrency trading platforms or brokerswhich, for the most part, do not comply with federal securities laws and often have conflicts of interest.
Third, Commission staff are separately completing the review of the registration statements of 10 bitcoin spot ETPs simultaneously, which will help create level playing field for issuers and will promote fairness and competitionbenefiting investors and the market in general.
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2024-01-11 15:50:51
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