Bitcoin ETF Could Launch Next Week As BTC Reaches $62,000
ProShares submitted papers yesterday, detailing plans for the launch of its Exchange-Traded Fund(ETF). This news follows seemingly supportive comments by SEC chairman Gary Gensler. BTC price has been rising the wave of the news since, breaking previously established resistances on its way back to its all-time high. A Bitcoin ETF would be a first for the country which is foremost in attempts to regulate crypto in its economy. With the economic power of the United States behind Bitcoin, many believe that the premier cryptocurrency could finally gain a proper foothold in the world economy.
The businesses don’t anticipate their plans to be rejected, according to individuals familiar with them, but the SEC may accept, reject or postpone any or all of the applications. New ETF proposals are subject to a 75-day SEC review process. If authorities don’t complain, the funds are deemed approved for trade.
Monday will mark the conclusion of the evaluation period for the ProShares fund. Following the first four companies this month, five more firms have filed with the SEC to list similar funds, and judgments on them will likely be made in future months. The asset management sector has been lobbying for years to offer a Bitcoin ETF, hoping to cash in on a rise in the value of digital currencies. Some in the sector believe investors should move some of their holdings into crypto attracting returns from the asset. A Bitcoin ETF would make it simpler to do so, according to experts in the sector.
Why An ETF?
An exchange-traded fund is an investment that follows the price of a basket of underlying assets and is tradable on U.S. stock exchanges. In this instance, the funds would follow the price of bitcoin futures sold on the Chicago Mercantile Exchange, rather than bitcoin itself.
Regulators favor futures-based ETFs since the SEC lacks authority over crypto trading venues that aren’t regulated as exchanges in the U.S. The SEC argues it leaves investors susceptible to fraud and manipulation since regulators have no insight into where bitcoins are coming from and how prices are being set. The SEC hasn’t authorized exchange-traded funds that store Bitcoin or other cryptocurrencies directly, and the agency has indicated it wouldn’t support such a move at this time.
Bitcoin Smashes $60,000 Mark
News of the Bitcoin ETF has clearly been well received as the coin has gone on a spectacular run. It broke above $60,000, its highest level by far in months and more than 2 times more than its lowest point in May. The bulls are currently in control and BTC touched above $62,000, almost reaching $63,000 before a slight pullback.
So far, all eyes are on BTC to continue its amazing run and bring more life into the market which flagged for months following the last price crash in May.
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