Bitcoin Close to $60K Amid Possible ETF Approval

Bitcoin is up by 3% after a half-year period of going up and down. April 2021 was the last time that the biggest crypto hit $60,000.

The price going higher comes as a result of news suggesting approval of a Bitcoin exchange-traded fund in the US.

This morning was good news for the traders who immediately profited from the $1,500 move, the asset falling to $59,500 at press time. According to statistics from app Bybt, more than $69 million in Bitcoin deals were liquidated because of this. 

What’s the fuss about ETFs?

ETFs, short for exchange-traded funds, give the chance for building a portfolio with low investment amounts. What they do is track an index, commodity, sector, or some other asset (for example crypto) that can be bought or sold on a stock exchange just like a regular stock can.

The crypto sector has long aimed for a Bitcoin ETF approval but it was always denied by the Securities and Exchange Commission of the country.

Anyway, these difficulties are about to end as the BTC ETF is expected to happen during this year’s October.

Anonymous sources informed that the regulator is probably going to allow products to start trading next week. This promised Bitcoin ETF is different from the ones denied before, as they were filed as spot-based products, whereas this one is futures-based. ProShares and Invesco Ltd offer these current Bitcoin ETF applications.

The contracts were submitted under the same fund rules, which are considered to protect the investor, as claimed by Gary Gensler, the SEC Chairman. 

This is a positive change for the crypto sector as until now, the previous administration would keep a distance in crypto-regulation matters in the US. 

Such a launch would be significant as it was not achieved within a night, instead, the campaign by the ETF industry almost took a decade.

Four futures-backed Bitcoin ETFs are expected to start trading on American exchanges as early as this month, with Valkyrie and VanEck’s application deadlines approaching. 

Crypto advocates are positive that the market is ready for ETF approval and the BTC prices will only go higher.

This news took to Twitter where the crypto community seem thrilled about the ETF approval. One of the users, Vijay Boyapati, states that the awaited flow of funds after the EFT approval will be massive. Boyapati is only worried about a possible price dump that might result because of this. 

Apart from the general thrill, there were others expressing their doubts over the Bitcoin ETFs anticipation. Chris Burniske, the founder of Placeholder VC, cannot let go of the ‘crypto paranoia’ and is wondering whether this might change things for the worse.

Also Read: Bitcoin Surpasses Facebook and Tesla by Reaching $1 Trillion in Market Capitalization