It’s been a weird 24 hours for the SEC. First, its X account is hacked and it appears to approve bitcoin ETFs. Then it announces it’s approving bitcoin ETFs. Call me a cynic, but I think somewhere a Nigerian prince is rubbing his hands.

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SEC approves bitcoin ETFs

The Securities and Exchange Commission has approved the first US-listed exchange-traded funds to track bitcoin, wrapping up a bizarre 24 hours in which the regulator’s X account was hacked, announcing the news prematurely.

The SEC approved 11 applications, including those from BlackRock, Fidelity, Invesco, and Ark Investments. The flurry of approvals will likely spur competition for market share among the ETF issuers, which have already slashed their proposed fees.

ETFs are investment vehicles traded on traditional regulated exchanges that track the price of certain assets. Bitcoin ETFs will give investors exposure to the cryptocurrency without them directly holding it or needing to open a digital wallet. It’s a big mark of legitimacy for bitcoin, which will now effectively enter the financial mainstream.

Earlier in the week, a post from the SEC’s X account appeared to announce the approval of bitcoin ETFs. It was later revealed to have been posted by a hacker, prompting investigations by both the SEC and X. The FBI is also looking into the breach.

The approval is a change of position for the SEC. It had previously rejected bitcoin ETFs because of worries they could be easily manipulated. The regulator’s Chair Gary Gensler is also a fierce crypto skeptic, but unusually voted with the two Republican commissioners to approve the product.

The US isn’t the first country to approve bitcoin ETFs, though. In Canada, there are several crypto ETFs trading on the Toronto Stock Exchange. Investors in Germany and Switzerland are also able to trade similar products.

Bitcoin was trading at about $46,000 after the news, which appeared largely to be priced in. The cryptocurrency has risen more than 70% in recent months, and hit its highest level since March 2022 this week.

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