Historic Move: SEC Grants Approval for Bitcoin ETFs In a groundbreaking decision, the United States' Securities and Exchange Commission (SEC) granted approval for Bitcoin investment through Exchange Traded Funds (ETFs) on Wednesday. This development marks a significant milestone in the realm of cryptocurrencies, allowing investors to engage with Bitcoin through conventional investment channels, as reported by Reuters. However, securing this approval was no easy feat. Asset management firms had been striving for Bitcoin ETF approval since 2013. The SEC, however, had consistently withheld approval, citing concerns about the lack of proper regulation in the Bitcoin market. The turning point came in August 2023 when a US court ruled that the SEC had unjustly rejected Grayscale Investments' application based on incorrect reasons. The court ruled in favor of Grayscale, compelling the SEC to reevaluate their petition. Subsequently, the SEC granted approval on the applications from ARK Investments, BlackRock, Fidelity, and Grayscale. **How Bitcoin-Backed ETFs Operate** The ETF-backed bitcoins from these companies will be listed on major stock exchanges such as Nasdaq, the New York Stock Exchange, and the CBOE. This listing on familiar platforms makes it convenient for investors accustomed to trading on these exchanges. Exchange Traded Funds (ETFs) are a form of investment easily tradable on the stock market. Instead of directly holding a specific stock, commodity, or security, investors can purchase and retain ETFs, which track the price movements of the underlying asset—in this case, Bitcoin. This structure allows individuals to speculate on Bitcoin's price without the need to own Bitcoin directly. The question arises: why not buy Bitcoin directly? The reality is that Bitcoin and cryptocurrencies remain too risky for the majority of mainstream investors. Regulations for Bitcoin trading are still unclear, and the process of owning bitcoins involves managing a cryptocurrency wallet—a concept that can be intimidating for those unfamiliar with the crypto space. ETFs, managed by fiduciary parties, serve as a bridge, making the investment more accessible. Bitcoin ETFs are anticipated to introduce a new level of trust and acceptance to the cryptocurrency world. SEC approval now enables institutional investors to trade and invest in Bitcoin seamlessly. This move facilitates easy investment and exchange of traditional assets such as Tesla shares, US bonds, gold, oil, and more. Meanwhile, the price of Bitcoin has been on the rise since the beginning of the year, with other cryptocurrencies following suit. Bitcoin has reached its highest price in 22 months, surpassing $46,000 as of Wednesday morning. This surge marks the first time Bitcoin has reached such levels since April 2022. In November 2021, Bitcoin set a record high of $69,000. While crypto is yet to reach its peak levels, the bullish trend observed since the start of the year has been driven by optimism around the potential approval of Bitcoin ETFs by US securities regulators—an optimism expected to intensify following the recent SEC approval.