Bitcoin Touches $60,000 Amid Hype of ETF Approval

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In Brief
  • Bitcoin touched the $60,000 mark today, as traders anticipate the approval of Bitcoin futures exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).

  • According to anonymous sources from Bloomberg, the SEC is set to approve proposals for ETFs based on Bitcoin futures submitted by ProShares and Invesco Ltd.

  • The sources also said that the regulator would be unlikely to stop the introduction of these products.

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Bitcoin touched the $60,000 mark today, as traders anticipate the approval of Bitcoin futures exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).

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Bitcoin has broached this threshold for the first time in six months. After achieving an all-time high of nearly $65,000 in April, the cryptocurrency market took a dive and Bitcoin is only starting to see those heights again. The recent bump to this latest threshold can be attributed to cryptocurrency investors’ anticipating the approval of the first Bitcoin ETF in the United States. 

Anticipating approval

According to anonymous sources from Bloomberg, the SEC is set to approve proposals for ETFs based on Bitcoin futures submitted by ProShares and Invesco Ltd. These applications were filed under mutual fund rules, which SEC Chairman Gary Gensler said provide “significant investor protections, unlike others the SEC has already rejected. 

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The sources also said that the regulator would be unlikely to stop the introduction of these products. This was corroborated by a tweet from the SEC’s investor education office saying, “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.” This implicit confirmation is likely what stoked the rally earlier today.

Many other fund managers have also applied to launch bitcoin ETFs in the United States, so far to no avail. Some prominent names include the VanEck Bitcoin Trust, Goldman Sachs, Fidelity, Valkyrie and Galaxy Digital Funds. Besides these products, which are more closely exposed to Bitcoin, another four futures-backed Bitcoin ETFs could start trading on American exchanges this month. Dozens of cryptocurrency exchange-traded products are already trading in Canada and across Europe

“We have seen more institutional build up, especially in the past few weeks, than we have at any time since the (bitcoin price) crash back in April,” said Noelle Acheson, head of market insights at Genesis Global Trading.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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