Bitcoin was trading higher on Thursday after the top U.S. securities regulator approved the first exchange-traded funds tracking the cryptocurrency’s spot price.
By 06:44 ET (11:44 GMT), had risen 3.0% to $46,929.1.
In a decision that is anticipated to have sweeping implications for the wider crypto industry, the U.S. Securities and Exchange Commission gave the green light on Wednesday to 11 applications from a range of issuers, including BlackRock (NYSE: NYSE:) and Fidelity as well as digital currency asset manager Grayscale.
Some proponents of Bitcoin, the world’s most popular cryptocurrency, have claimed that the SEC’s approval would spark a rush of demand for the token. Through a spot Bitcoin ETF, investors can gain exposure to the digital asset without directly owning it.
Detractors have, however, flagged that ETFs could persuade retail traders to pour money into a sector beset by fraud-related scandals and enormous volatility.
The decision, backed by SEC Chair and known crypto-skeptic Gary Gensler, marked a U-turn for a commission that was primarily reticent to sign off on the spot Bitcoin ETF for much of the past decade.
It also comes after hackers temporarily took control of the SEC’s account on social media platform X on Wednesday and falsely claimed that the regulator had already approved the applications, sparking wild fluctuations in the price of Bitcoin.