In a significant development, the US securities regulator SEC approved the first US-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world’s largest cryptocurrency and the broader crypto industry.

The announcement came at the end of tumultuous 24 hours for the popular cryptocurrency, when a tweet was sent from the Securities and Exchange Commission (SEC) account announcing the approval of the long-awaited ETFs. This led the price of bitcoin to spike by more than USD 1,000. Soon after, the SEC said its account had been “compromised” and that the tweet was “unauthorised”.

As per the announcement, SEC has approved 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck among others.

Some products are expected to begin trading as early as Thursday, kicking off a fierce competition for market share.

Approving the new ETFs, the SEC said it was still deeply skeptical about cryptocurrencies. The decision did not mean it approves or endorses bitcoin.

“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” said Gary Gensler, the agency’s chairman.

“I am concerned that these products will flood the markets and land squarely in the retirement accounts of US households who can least afford to lose their savings to the fraud and manipulation that appears prevalent in the spot bitcoin markets,” Commissioner Caroline Crenshaw said in her dissent.

This move by the SEC has opened the door to cryptocurrencies to many new investors who don’t want to take the extra steps involved in buying actual bitcoin.

It will be offering investors exposure to the world’s largest cryptocurrency without directly holding it. They provide a major boost for a crypto industry beset by scandals.

Notably, the Bitcoin was last up 3 per cent at USD 47,300. It has soared more than 70 per cent in recent months in anticipation of an ETF, and hit its highest level since March 2022 this week.

Since bitcoin’s inception, anyone wanting to own one would either have to adopt a digital wallet or open an account at a crypto trading platform like Coinbase or Binance.

This development will thrust the once niche and nerdy corner of the internet even further into the financial mainstream.

Importantly, the green light from the SEC follows many years of delays and outright rejections of numerous attempts to launch spot bitcoin ETFs.