Last week witnessed one of the most important events in the history of cryptocurrencies: the US Securities and Exchange Commision (SEC) approved spot Bitcoin ETFs.

Eleven out of 13 applications for Bitcoin ETF licenses from long-lasting financial institutions such as BlackRock, Fidelity and Invesco, to new companies such as Grayscale and Ark Investment, officially got approval from the US SEC after many years of efforts. This allows Bitcoin (BTC) to be listed on traditional financial markets, including Nasdaq, NYSE and CBOE.

Prior to that, SEC had many times refused proposals from Bitcoin ETF for fear of risks to investors.

Phan Duc Trung, deputy chair of the Vietnam Blockchain Association (VBA), said that spot Bitcoin ETFs are present in eight markets (Canada, Germany, Brazil, Australia, Switzerland, Liechtenstein, Jersey and Guernsey), but approval in the US, the world’s largest economy, will open up a new era for the most popular cryptocurrency with the highest liquidity.

“The approval of spot Bitcoin ETF will also pave the way for related legal regulations, creating opportunities for crypto assets to appear in corporate balance sheets in an official way, affirming the RWA (Real World Asset) or the tokenization trend of financial products in the future," Trung said.

Trung said Bitcoin ETF will serve as an important leverage that helps "clean Bitcoin"become better known. Before issuing fund certificates, Bitcoin ETFs will have to choose clean Bitcoin sources because their activities are covered by strict legal regulations which have been applied to the stock market for many years.

Therefore, cryptocurrency miners will have an advantage in providing clean Bitcoin which have clear origin, while traditional financial investors will be able to minimize risks and have more opportunities to access assets that can be identified and verified by large financial institutions.

As for investors, when having more options, they will be more cautious when deciding whether to choose to make transactions at cryptocurrency exchanges which still don’t have a legal status, because they now can make transactions at spot Bitcoin ETFs.

“In general, it will be legally safer when buying Bitcoin ETFs than buying BTC on Binance, HTX, Huobi, BingX and Gate.io,” he explained.

As Bitcoin ETFs have been recognized, the number of new investors will increase significantly as barriers to BTC access, and technical and legal risks, have been removed.

Previously, individual investors with limited knowledge about blockchain said they felt it was risky when conducting operations to buy BTC at exchanges. But now they can feel safe when buying BTC safety and conveniently.

Trong Dat