Crypto world in turmoil: US regulator agrees to arrival of funds after a long wait | Economy

The approval by the American regulator has been eagerly awaited in the crypto world for a long time. This is an investment product that moves in line with the price of the digital currency. Investors do not have to immediately buy bitcoin and store it in a digital wallet. Instead, they are given the opportunity to invest in bitcoin indirectly through the funds.

The approval should therefore make many billions of dollars worth of crypto investments possible. Experts have also previously pointed out that the admission of bitcoin ETFs could improve the image of bitcoin, which is often linked to money laundering operations and cybercrime.

The American regulator previously stopped the arrival of these trackers for fear that they could lead to market manipulation. But judges ruled last year that the regulator had to look at the admission again. The ETF would not be that different from other similar products that have been around for some time. For several years now, there have also been ETFs that track so-called bitcoin futures or forward contracts. But experts also consider these to be expensive and inconvenient products.

Last year, bitcoin increased in value by almost 160 percent, due to optimism about the funds and more interest from major investors in crypto coins. Bitcoin was worth less than $46,000 in New York on Tuesday.

A level above $47,000 was reached on Monday, which was the first time since April 2022. The world’s most famous digital currency reached a record level of approximately $69,000 in November 2021.

Other digital currencies are also increasing in price, such as ether, Litecoin and XRP. The price movements of digital currencies are often very erratic. The crypto market is also regularly shaken by unrest and scandals, such as the collapse of the major trading platform FTX last year.