Exchange Traded Products (ETPs) are funds that represent an index, currency, or commodity. There are numerous providers of such products, including Coin Shares, 21 Shares, Seba, Van Eck, and Wisdom Tree. These allow investments not only in Bitcoin but also in other cryptocurrencies such as Cardano, Ethereum, Polkadot, Solana, or a combination of these. Recently, indirect investment in tokens through online banks like Flowbank, Cornertrader, Saxo, Swissquote, or Yuh has become possible, eliminating the need for a personal wallet. Many financial service providers and cantonal banks are developing their own crypto offerings and are expected to launch them in the coming months. This makes the detour via specialized trading platforms increasingly unnecessary for small investors interested in crypto.
However, a recent hacking attack on the powerful SEC has raised questions about the handling of security-critical mechanisms at this important American agency. Despite the SEC’s demand for strict regulation of the crypto market and higher security standards, it fell victim to a simple hack. Reportedly, the SEC profile was hijacked because someone was able to gain access to the phone number linked to the X-account. At the same time, the short message service X stated that the SEC account was not even protected by a simple two-factor authentication at the time of the hack.
Before the Securities and Exchange Commission (SEC) approved the long-awaited Bitcoin funds, hackers caused chaos with a cyber attack. The excitement increased when unknown hackers gained access to the SEC’s X short message service account and posted a fake short message announcing the supposed approval. The SEC and its head, Gary Gensler, quickly denied the message, but the Bitcoin price made wild swings, first steeply upwards, then slipping again.
Finally, on Wednesday, the SEC announced that eleven applications had been approved. The first ETFs could start trading as early as Thursday. However, Gensler stated that the US agency neither approves nor supports Bitcoin. Bitcoin is a speculative, volatile asset. Investors should be cautious with the risks of Bitcoin and the corresponding products.
This paves the way in the United States for the commercialization of ETFs that invest in the main cryptocurrency, Bitcoin, as a base value and are tradable on conventional exchanges. Cryptocurrencies are becoming accessible to additional investors. The prospect of large inflows of money has strongly driven Bitcoin in recent months and made cryptocurrencies one of the most successful asset classes of 2023.
The approval of ETF funds on Bitcoin is a milestone for the crypto industry. ETFs have become one of the most popular forms of investment among private and professional investors due to their low costs. They are easily purchasable and tradable, making the funds very popular among small investors. Large investors such as pension funds or private banks, which were not allowed to invest in Bitcoin for technical or regulatory reasons, can now do so via an ETF, as they do not have to directly own the cryptocurrency.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇠|
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Gary Gensler, Eflamm Mordrelle |
| Companies | 21 Shares, Swissquote, Coin Shares, Flowbank, Yuh, Wisdom Tree, Saxo, SEC (Securities and Exchange Commission), Seba, Van Eck, Cornertrader |
| Currencies | Cardano, Polkadot, Ethereum, Bitcoin, Solana |
| Securities | None |
