On Friday, Bitcoin surpassed the $60,000 mark as traders bet that the first bitcoin futures exchange-traded fund would be approved by U.S. authorities. According to Coin Metrics, the largest cryptocurrency in the world increased by almost 8% to $62,307, reaching its highest level since April 17.
According to a source familiar with the situation, the Securities and Exchange Commission will allow trading in the first U.S. bitcoin futures ETFs to begin next week, marking a significant win for the cryptocurrency sector, which has long sought approval from Wall Street’s top regulator.
The First USA Bitcoin ETF
SEC Chairman Gary Gensler believes that futures-based ETFs registered under mutual fund rules, which he believes give investors substantial protection, will not be blocked by the agency, according to the source.
When the ProShares Bitcoin Strategy ETF debuts on the NYSE on Tuesday, analysts expect the SEC to not stop it.
Numerous companies, such as Galaxy Digital of Mike Novogratz and ARK Invest of Cathie Wood, are waiting for the green light to launch their own ETFs. The SEC must approve VanEck and Valkyrie’s Bitcoin futures ETFs by the end of October if they are to be on the market. Both companies have deadlines of the same month. In a post from one of its social media accounts on Thursday, the agency hinted at its plans to trade in Bitcoin futures.
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F
— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
A Crazy Crypto Year
The news about the ETF didn’t benefit all cryptocurrencies equally. The second-largest cryptocurrency, Ether, gained 0.5 percent to $3,804 per token on the spot market. XRP and ADA, on the other hand, were both down about 2%.
This year has seen a rollercoaster journey for Bitcoin and other cryptocurrencies. In April, the top digital currency reached a record high of almost $64,000 before the Chinese government launched a crackdown on the crypto industry, causing prices to plummet. Since then, it’s made a return and seen a price increase of more than 100% so far this year.
As investor interest in crypto has risen, regulators have taken a harsher stance this year. There has been some pushback from the sector, with Coinbase urging the United States to establish a new authority to regulate digital assets on Thursday.