US regulator approves first bitcoin funds on public markets

US regulator Securities and Exchange Commission [SEC] has approved the first bitcoin exchange-traded funds [or ETFs] on public markets, a game-changer for the cryptocurrency industry which has been trying for more than a decade to launch such a product.

SEC's approval came on Wednesday, a move that may spur investing in the digital currency.

Multiple asset managers have applied for bitcoin ETFs since 2013, but the SEC rejected them on the grounds they would be vulnerable to market manipulation. In August, however, a court found the SEC was wrong to reject Grayscale Investments' bitcoin ETF application, forcing the agency to rethink its stance.

Regulators approved proposals for 11 ETFs to list on leading exchanges including the New York Stock Exchange "on an accelerated basis," the Securities and Exchange Commission said in a 22-page order.

Doors open for new investors?

An exchange traded fund is an easy way to invest in something or a group of things, like gold, junk bonds or bitcoins, without having to buy the things themselves.

Unlike traditional mutual funds, ETFs trade like stocks, which means they can be bought and sold throughout the day.

Since the inception of bitcoin, anyone wanting to own one would have to buy it. That in turn would mean either having to learn what a cold wallet is or having to open an account at a crypto trading platform like Coinbase or Binance.

A spot bitcoin ETF could open the door to many new investors who don't want to take such extra steps.

Cryptocurrency advocates hope the development thrusts the once niche and nerdy corner of the internet even further into the financial mainstream.