On Wednesday, the U.S. Securities and Exchange Commission (SEC), led by Gary Gensler, gave the green light to launch the country’s first exchange-traded funds (ETFs) that will mirror the performance of Bitcoin. This decision marks a significant moment for the preeminent digital asset and the crypto sector at large. The SEC has given the nod to several applications for these ETFs, including those from prominent firms like BlackRock and Fidelity, as announced on its website.

Some of these ETFs are set to start trading as soon as Thursday. A decade in the making, these products are poised to transform the Bitcoin landscape. They offer both institutional and retail investors a new avenue to gain exposure to the leading cryptocurrency, without the need to own it directly. This development comes as a substantial uplift for the cryptocurrency sector, which numerous controversies have marred.

This approval represents a major shift in stance for the SEC, which had historically been hesitant to approve bitcoin ETFs due to concerns over market manipulation. Gary Gensler, the SEC chair, has been known for his critical view of cryptocurrencies. The SEC’s change of heart came after a federal appeals court’s decision last year, which found the agency’s rejection of Grayscale Investments’ application to transform its Grayscale Bitcoin Trust into an ETF as erroneous.

This verdict prompted the SEC to reconsider its stance. Gensler, in a statement, remarked that in light of the court’s decision, sanctioning these ETFs was “the most sustainable path forward.” However, he emphasized that the SEC’s approval does not equate to an endorsement of bitcoin, which he described as a high-risk and volatile asset.

This official announcement comes nearly twenty-four hours after a rogue post on X was published by SEC Chair Gensler announcing the approval. However, the post was walked back by Gensler who claimed that “unauthorized content” was published by a user that gained access to the account. The ensuing calamity caused a severe spike and fall in Bitcoin price. Bitcoin peaked at 47,680 USD.

That extreme flux caught the attention of the U.S. Congress and the FBI which has launched an investigation into the alleged hack.

? U.S. Senators JD Vance and Thom Tillis ?? Demand Clarification from SEC on Fake News Regarding Approval of Bitcoin Spot ETFs Within 4 Days!

"Unacceptable for the agency overseeing financial markets to make such a grave error…

… If the social media post is indeed the… pic.twitter.com/tCC2UJnPBv

— BoKuBu (@atrungbs87) January 10, 2024