Bitcoin at $ 60,000 thanks to the ETF (probable) Bitcoin Futures


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Here we go again. Bitcoin broke through the $ 60,000 cap this morning, boosted by the likely start of a Bitcoin futures exchange-traded fund (ETF) next week.

While a far cry from a “pure” Bitcoin-only ETF – on which the Securities and Exchange Commission has been delaying its decision for months now – the new ETF gives traders and investors hope that it could open the door. way to approval.

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“It is clear that the recent surge in the price of BTC is directly linked to the rumor that the SEC will go ahead with the first Bitcoin ETF approval in the United States,” Mikkel Morch, executive director and chief executive officer, told GOBankingRates. risk management of the crypto hedge fund ARK36. declaration. “It is becoming increasingly likely that at least one of the top contenders for a BTC futures ETF, like Valkyrie or Van Eck, could be approved in the coming days and ahead of the strict SEC deadlines in November. As Valkyrie Investments updated its futures ETF prospectus with ticker BTF on Wednesday, the company is believed to have the greatest chance of winning this race (in) the near future.

The ProShares Bitcoin Strategy ETF is scheduled to debut on the New York Stock Exchange on Tuesday. Unlike Bitcoin ETF applications that the SEC rejected, ProShares’ proposal is based on futures contracts and was filed under mutual fund rules which, according to SEC Chairman Gary Gensler, offer “a important investor protection, ”Bloomberg reports. The ETF is based on bitcoin futures that trade on the Chicago Mercantile Exchange and seeks to provide capital appreciation primarily through actively managed exposure to bitcoin futures, according to the filing. DRY. It does not invest directly in Bitcoin.

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There is a catch, however: The ETF becomes active unless the Securities and Exchange Commission objects to the filing, which can happen until midnight Monday, according to CNBC.

Bloomberg reports, however, that the Bitcoin Futures ETF “should face no opposition to the SEC, according to several sources, and that it is” a deal pretty much over. “

This was somewhat corroborated by the SEC, which tweeted yesterday: “Before investing in a fund that holds Bitcoin futures, be sure to weigh the potential risks and rewards …”

Investors and investment managers have been eagerly awaiting an SEC decision on the approval of Bitcoin ETFs, which should be traded on the “exchange” – in other words, on the stock market (and therefore, only for the hours when the stock market is open). Currently, cryptos do not have such limitations and can be traded at any time.

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While several companies have filed crypto ETFs with the SEC, the commission has rejected or delayed decisions on many of them. VanEck, for example, registered his ETF in March, and the SEC typically takes 45 days to approve or disapprove a deposit. The commission has issued several opinions to extend the review period. Just last month, the SEC said it intended to take an additional 60 days to review the proposed rule change and “accordingly designate November 14, 2021 as the date the commission must approve or disapprove the change. rule proposed “.

Morch adds, however, that a Bitcoin ETF approval is likely already included at this point. And that investors should be aware that hopes of a sustained rally above the $ 60,000 mark and beyond the previous all-time high could just as easily turn into a ‘buy the rumor, sell the news’ scenario. “.

“Either way, it’s worth noting that the price went from $ 40,000 to $ 60,000 in an almost straight line and it would be natural for Bitcoin to take a break after such a long climb,” he adds.

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Last updated: October 15, 2021

About the Author

Yael Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a vice president / senior content writer for major New York-based financial firms including New York Life and MSCI. Yael is now a freelance writer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.


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