Explainer-Why a US bitcoin ETF is a game-changer for crypto

FILE PHOTO: A bitcoin logo is pictured on a door in an illustration picture taken at La Maison du Bitcoin in Paris May 27, 2015. REUTERS/Benoit Tessier/File Photo

(Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday approved exchange-traded funds (ETFs) that track the price of bitcoin in a game-changer for the cryptocurrency industry which has been trying for more than a decade to launch such a product.

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.