Investing.com - There was a lot of buzz among investors in the cryptocurrency sector on Wednesday, and finally the US markets regulator, the SEC, approved the first ETF that will allow investors to invest in bitcoins without having to buy the cryptocurrency outright.
"The SEC made it clear that it does not support this type of investment, as it considers bitcoin to be 'a speculative and volatile asset that is also used for illicit activities including money laundering, tax evasion and terrorist financing', and that its approval was the result of pressure from the courts," Link Securities said.
"The reaction of bitcoin to the news has been almost imperceptible, probably because the market had already discounted it", these experts add.
Yesterday, Bitcoin was up barely 1%, and is currently trading at around 46,000 dollars. The biggest riser was Ethereum, which is currently trading at 2,500 dollars.
"The interests of the strong hands are causing long and short liquidations," warned Diego Morin, an analyst at IG, before the SEC's decision yesterday.
According to Morin, "large investment funds such as BlackRock, Grayscale, Invesco and Fidelity have a vested interest in 'controlling' a market that will be important for the next decade.
The SEC's decision will likely lead to the conversion of the Grayscale Bitcoin Trust, which holds about $29 billion of the cryptocurrency, into an ETF, as well as the launch of competing funds from conventional issuers such as BlackRock's (NYSE:BLK) iShares and Fidelity. The first funds are set to begin trading this Thursday, CNBC gathers.
"The approval may prove to be a milestone in mainstream finance's adoption of the cryptocurrency, as the ETF structure gives financial institutions and advisers a familiar and regulated way to buy exposure to bitcoin," the media outlet says.
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