Bitcoin Reaches $60k Amid Reports Of US SEC Approval Of BTC ETF Trading
Bitcoin reaches $60k amid reports of US SEC approval of BTC ETF trading
BTC, the most widely used cryptocurrency in the world, has recently surpassed the $60,000 mark after experiencing a five-month decline. This increase is being attributed to unconfirmed reports that the United States Securities and Exchange Commission (SEC) is on the verge of approving trading in Bitcoin futures exchange-traded funds in the United States (ETF).
A series of highs and lows have marked the cryptocurrency market's performance this year. When Bitcoin reached an all-time high of nearly $65,000 in April, it was followed by a precipitous drop after China announced its crypto ban.
The Securities and Exchange Commission (SEC) has previously rejected Bitcoin ETF applications. The proposals put forward by ProShares and Invesco Ltd., according to reports, are based on futures contracts and were filed in accordance with mutual fund regulations. According to reports, Gary Gensler, the chairman of the United States Securities and Exchange Commission, has stated that the new proposals provide "significant investor protections."
Investing management companies ProShares and Invesco Ltd, which manage a diverse range of exchange-traded fund (ETF) products, each of which is designed to pursue a specific speculative investment strategy, are based in the United States.
According to the company, the fund will begin trading on Monday and will mark the culmination of a nearly decade-long campaign by the $6.7 trillion exchange-traded funds (ETF) industry. And according to Vijay Ayyar, Luno's head of Asia Pacific, this is what is driving up prices, according to CNBC.
Sources say that the SEC is unlikely to reject the trade, but the Luno CEO has warned that a rejection would almost certainly result in the coin's demise.
"Bitcoin is approaching significant time frame resistance near 58-60K, and a rejection of the ETF application could send the cryptocurrency back to the 53-55K range. In spite of this, the overall trend remains bullish, and there are a number of additional ETF applications currently pending "he explained.
There have been calls for the regulation of the cryptocurrency market. There have been numerous proposals for funds that would either hold Bitcoin in a digital vault or use leverage to increase returns over the years.
In a statement, the SEC expressed concern that prices could be manipulated, liquidity could be insufficient, and that the wild price swings of Bitcoin could be too much for individual investors to bear. Also raised were concerns about establishing ownership of the coins held by funds as well as the threat posed by cybercriminals.
On the whole, though, the prospect of trading bitcoin ETFs would provide mainstream investors with exposure to the cryptocurrency and would mark a watershed moment for the crypto industry, which has long pushed for greater Wall Street acceptance of digital assets.
