US SEC Relaxes Rules for Bitcoin, Ether Funds Shifting Away from Cash-Only Approach

The U.S. Securities and Exchange Commission (SEC) has eased regulations concerning exchange-traded funds (ETFs) that invest in Bitcoin and Ether, signaling a significant departure from the prior cash-only model. This policy adjustment now permits these funds to directly invest in digital assets, thereby widening the accessibility of these cryptocurrencies for investors. Experts have lauded this move as a pivotal development in the regulation of digital assets, potentially attracting increased institutional investment into the sector. It is anticipated that this change will lead to greater liquidity and enhanced market efficiency, in addition to offering more diversified investment options for both individual and institutional investors. Nonetheless, some concerns persist regarding the inherent price volatility associated with cryptocurrencies, underscoring the need for caution and thorough research before investing in these funds.