Bitcoin rallies after SEC approves spot bitcoin ETFs

Investors hope spot bitcoin exchange traded funds will open the gateway for mainstream capital to flood the crypto market

Bitcoin has rallied after the US SEC approved multiple spot bitcoin ETFs. However, a leading VC founder has said that retail investor involvement will be more controlled than in earlier cycles, as regulatory oversight and enforcement has increased.

Last Wednesday, the Securities and Exchange Commission approved ETF applications from some of the biggest names on Wall Street, from BlackRock to Franklin Templeton. Investors hope spot bitcoin exchange traded funds will open the gateway for mainstream capital to flood the crypto market.

According to Outlier Ventures Founder Jamie Burke, current bitcoin (BTC-USD) investing conditions are different compared to the bull market of 2021, that saw an influx of retail investors driving the token’s price to an all-time high of more than $68,000.

After the SEC’s approval of multiple exchange traded funds “retail investing is going to be different this time”, Burke told Yahoo Finance’s The Crypto Mile.

Although lot of retail investors will gain access to bitcoin through financial products such as spot bitcoin ETFs and bring more capital into the market, however, it will enter in a different form, Burke said.

He said the surge in interest in bitcoin, triggered by the SEC’s approval of multiple exchange traded funds, will not resemble previous hype cycles that witnessed substantial retail participation. I think that is kind of finished now.

We are now seeing a lot of enforcement action by regulatory bodies tackling the selling of unregistered securities. Here in the UK, the FCA is now putting various controls on how crypto is promoted to retail.

So, retail is likely to now come through more structured instruments. Hopefully now it will be a little more consistent, constant and less volatile, he added.

After last Wednesday’s approval, investors in the US now have access to the exchange traded funds, but they remain prohibited for those in the UK due to FCA rules.

In the UK, US ETFs are not available for sale because they do not issue key investor documents. It means asset managers would need to launch funds specifically for the UK market.

Consequently, the primary option for UK crypto enthusiasts is acquiring bitcoin through crypto trading platforms, like Coinbase or Kraken.

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