Bitcoin nears $60,000 as traders eye first U.S. ETFs

A illustration of cryptocurrency Bitcoin is seen on this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration/File Photograph

Oct 15 (Reuters) – Bitcoin hit a six-month excessive on Friday, approaching the file hit in April, as merchants grew to become more and more assured that U.S. regulators would approve the launch of an exchange-traded fund based mostly on its futures contracts.

The world’s largest cryptocurrency rose almost 4% to as excessive as $59,664, its highest since mid-April. It has doubled in worth this yr and is close to April’s file excessive of $64,895.

The U.S. Securities and Trade Fee (SEC) is poised to permit the primary U.S. bitcoin futures ETF to start buying and selling subsequent week, Bloomberg Information reported on Thursday, citing folks aware of the matter.

Ben Caselin, head of analysis and technique at Asia-based cryptocurrency trade AAX, mentioned bitcoin’s spike above $59,000 wasn’t arbitrary and long-term traders had been accumulating it for some time.

“It’s broadly anticipated that This autumn will see important progress round a bitcoin ETF within the U.S.,” he mentioned.

Friday’s strikes had been additionally spurred by a tweet from the SEC’s investor schooling workplace, he mentioned.

“Earlier than investing in a fund that holds Bitcoin futures contracts, be sure you fastidiously weigh the potential dangers and advantages,” the SEC tweet acknowledged.

Cryptocurrency traders have been ready for information of approval of the nation’s first bitcoin ETF, and a few of bitcoin’s rally in latest months has been in anticipation of that transfer and the way it may pace up its mainstream adoption and buying and selling.

A number of fund managers, together with the VanEck Bitcoin Belief, ProShares, Invesco, Valkyrie and Galaxy Digital Funds have utilized to launch bitcoin ETFs in the US. Cryptocurrency ETFs have been launched this yr in Canada and Europe.

SEC Chair Gary Gensler has beforehand mentioned the crypto market entails many tokens which can be unregistered securities and leaves costs open to manipulation and thousands and thousands of traders susceptible to dangers.

The Bloomberg report mentioned that the proposals by ProShares and Invesco are based mostly on futures contracts and had been filed underneath mutual fund guidelines that Gensler has mentioned present “important investor protections”.

The SEC didn’t instantly reply to a request for touch upon the Bloomberg report.

Reporting by Mrinmay Dey and Shubham Kalia in Bengaluru, Alun John in Hong Kong; Modifying by Vidya Ranganathan and Sam Holmes

Our Requirements: The Thomson Reuters Belief Ideas.

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