In a watershed moment for the cryptocurrency market, the US Securities and Exchange Commission (SEC) has given the green light to the first spot bitcoin exchange-traded funds (ETFs). This approval is expected to attract new retail and institutional investors to the market. 11 ETFs have been cleared for listing, featuring established players like Fidelity and Invesco, as well as newcomers Grayscale and Ark Invest. The ETFs, set to trade on exchanges like stocks, will benefit from special tax treatment in the US. Scheduled to start trading on Thursday, these ETFs mark a significant development, allowing US investors direct exposure to bitcoin through a regulated product.

The move is anticipated to boost demand for digital assets, offering an alternative to buying from unregulated exchanges or higher-cost ETFs investing in bitcoin futures. SEC Chair Gary Gensler, while approving the listing and trading of certain spot bitcoin ETP shares, issued a caution to investors about the risks associated with bitcoin and crypto-related products.