From CNBC:

The U.S. Securities and Exchange Commission has approved the first-ever batch of spot bitcoin exchange-traded funds. The move was largely expected, despite a social media hacking snag. The approval marks a massive step for the cryptocurrency, providing investors increased ways to gain exposure to the token.

A bitcoin ETF is an investment fund that tracks the performance of an underlying asset, in this case, bitcoin. It allows investors to gain exposure to the value of the underlying asset without directly owning it. ETFs trade on traditional stock exchanges and their value rises or falls based on the performance of the underlying asset.

The approval of a spot bitcoin ETF is expected to have a significant impact on the market. Many are comparing it to the first-ever spot gold ETF, which saw a substantial increase in market capitalization after approval. According to Vijay Ayyar of Indian crypto exchange CoinDCX, bitcoin’s adoption will be much faster and bigger, with the ETF sparking interest from retail investors who were previously on the sidelines.

A bitcoin ETF opens up the audience of people and institutions that can buy and sell bitcoin to those with little experience trading cryptocurrency. It increases the distribution in the U.S. and significantly changes the perception of crypto as an asset class. Big institutional fund managers and retirement planners can now include bitcoin in their investment portfolios.

The approval of a bitcoin ETF has huge implications for U.S. investors, as they can now hold crypto in their brokerage account. This provides a safe and easy way for mass retail to gain exposure to the asset class, as well as a credible stamp of approval for large institutions and market participants awaiting an easier way to access the asset class.



Read more: Here’s what a bitcoin ETF actually means for investors