Bitcoin (BTC) approaches $60,000 - investors wait for the first American Bitcoin ETF

Fri 15 Oct 2021 ▪ 21h32 ▪ 3 min read - by James Taylor

On Friday, 15th October, Bitcoin (BTC) hit a six-month high since the last ATH set in April. This growth is rumoured to have been spurred by the US Securities and Exchange Commission (SEC) potentially approving the launch of an exchange-traded fund based on futures contracts.

Bitcoin rose almost 4,5% to $59,664, reaching its highest level since mid-April. This year, its value has doubled and approached the $64,895 ATH.

The Securities and Exchange Commission is set to allow the first US Bitcoin futures ETF to start trading next week, Bloomberg News reported on Thursday, 14th October, citing anonymous sources.

But why is Bitcoin growing?

Ben Caselin, head of research and strategy at the AAX cryptocurrency exchange, believes that Bitcoin’s upward movement is not an accident.

“It is widely expected that Q4 will see significant progress around a Bitcoin ETF in the US,” he told Reuters. According to Caselin, Friday’s growth was spurred by a tweet from the SEC’s investor education department.

Cryptocurrency investors have long been waiting for the approval of America’s first Bitcoin ETF, and the Bitcoin rally of the recent months has been partly associated with this step.

In anticipation

Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds have applied to launch Bitcoin ETFs in the United States. In 2021, ETFs have been launched in Canada and Europe.

SEC Chairman Gary Gensler has previously said that many tokens on the crypto market can be regarded as unregistered securities, leaving their prices open to manipulation and putting millions of investors at risk.

According to the Bloomberg report, ProShares and Invesco offers are based on futures contracts and were filed in accordance with mutual fund rules that Gensler believes to have “significant investor protections” in place.

The SEC hasn’t yet responded to a request for comment on the Bloomberg report.

We’ll soon find out whether the SEC will approve the Bitcoin ETF launch or postpone the decision once again. Analysts are currently divided on the issue: pessimists say that at the moment, no necessary regulatory framework for this exists in the United States, so it’s unreasonable to believe ETFs will be approved in 2021. Are they right? Time will tell.

James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.