On Friday, Bitcoin surpassed $60,000 for the first time in six months, approaching its all-time high, as traders grew optimistic that US regulators would authorize the launch of an ETF based on its futures contracts.
Investors in digital assets have been waiting for the first U.S. ETF to be approved, and bitcoin’s current gain has been fueled in part by expectations of such a move, which is seen as hastening the mainstream adoption of digital assets.
Bitcoin, the world’s most popular cryptocurrency, gained 4.5 percent to $59,030, its highest level since April 17. Since Sept. 20, its value has increased by more than half, and it is currently near to its all-time high of $64,895.
Bloomberg News reported on Thursday that the Securities and Exchange Commission (SEC) is ready to authorize the first U.S. bitcoin futures ETF to begin trading next week.
“It’s commonly assumed that considerable development on a bitcoin ETF in the United States will take place in Q4,” said Ben Caselin, head of research and strategy at Asia-based cryptocurrency exchange AAX.
“Before investing in a fund that owns Bitcoin futures contracts, make sure you thoroughly assess the possible risks and rewards,” the SEC’s investor education division warned in a tweet on Friday, he said.
Several fund managers have applied to launch bitcoin ETFs in the United States, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds. This year, cryptocurrency exchange-traded funds (ETFs) were introduced in Canada and Europe.
“We’ve seen more institutional buildup in the last few weeks than we’ve seen since the (bitcoin price) fell in April,” said Noelle Acheson, head of market research at Genesis Global Trading.
According to SEC Chair Gary Gensler, the crypto market contains many tokens that may be unregistered securities, making prices subject to manipulation and exposing millions of investors to danger.
According to Bloomberg, which cited people familiar with the case, ProShares and Invesco’s proposals are based on futures contracts and were submitted under mutual fund rules that Gensler claims give “substantial investor safeguards.”
A request for comment on the Bloomberg report was not immediately returned by the SEC.
