Investing.com -- Bitcoin was trading higher on Thursday after the top U.S. securities regulator approved the first exchange-traded funds tracking the spot price of the cryptocurrency.
By 06:44 ET (11:44 GMT), Bitcoin had risen 3.0% to $46,929.1.
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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:BLK) 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 into the token. Through a spot Bitcoin ETF (TSX:EBIT), investors will have the chance to 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 that has been beset with a spate of fraud-related scandals and huge volatility.
The decision, which was backed by SEC Chair and known crypto-skeptic Gary Gensler, marked a U-turn for a commission that has largely been reticent to sign off on a 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.