{"id":201543,"date":"2021-10-15T07:03:18","date_gmt":"2021-10-15T06:03:18","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=201543"},"modified":"2021-10-15T07:46:51","modified_gmt":"2021-10-15T06:46:51","slug":"bitcoin-nears-60000-as-sec-voices-support-for-etf","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitcoin-nears-60000-as-sec-voices-support-for-etf\/","title":{"rendered":"Bitcoin nears $60,000 as SEC voices support for futures ETF"},"content":{"rendered":"

Bitcoin<\/span><\/a> temporarily broke the $60,000 level this morning amid <\/span>reports<\/span><\/a> of a Bitcoin <\/span>exchange-traded fund (ETF)<\/span><\/a> nearing approval in the US.<\/span><\/p>\n

The asset since fell to $59,500 at press time as traders took profits from the $1,500 move. Over $69 million worth of Bitcoin trades were liquidated as a result, data from analytics app <\/span>Bybt<\/span><\/a> shows.<\/span><\/p>\n

Bitcoin ETFs and why they matter\u00a0<\/b><\/h2>\n

ETFs are regulated institutional products that track an index, sector, commodity, or another asset (like crypto) and are majorly used by traditional finance players to bet on such assets or hedge against related sectors.<\/span><\/p>\n

Approval of a Bitcoin ETF in the US has long been mulled in crypto circles but has mostly seen rejection from the country\u2019s Securities and Exchange Commission. However, such woes seem to be coming to an end\u2014with sources expecting the Bitcoin ETF to be approved as early as this month.<\/span><\/p>\n

\u201cThe regulator isn\u2019t likely to block the products from starting to trade next week,\u201d said the people, who asked to remain anonymous. The current Bitcoin ETF applications filed with the regulator are <\/span>futures<\/span><\/i>-based\u2014unlike previously rejected applicants who filed for a <\/span>spot<\/span><\/i>-based product\u2014 and offered by ProShares and Invesco Ltd.\u00a0<\/span><\/p>\n

The contracts were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide \u201csignificant investor protections.\u201d This is a changed stance from the previous administration, which distanced itself from regulated crypto offerings in the US.<\/span><\/p>\n

The fund launch will be the culmination of <\/span>a nearly decade-long campaign<\/span><\/a> by the $6.7 trillion ETF industry. As such, four futures-backed Bitcoin ETFs could begin trading on U.S. exchanges this month, with deadlines for applications from VanEck and Valkyrie also approaching.<\/span><\/p>\n

Meanwhile, some crypto proponents stated the market was pricing in the impending ETF approval and that Bitcoin prices were set to only move further.<\/span><\/p>\n

\u201cSmart money typically “sells the news” (i.e. sells when the news actually occurs). In this case, it would be unwise. The flow of funds unlocked by an ETF approval will be massive,\u201d said Vijay Boyapati, soothing fears of a <\/span>price dump<\/span><\/i> right after the ETF was listed.<\/span><\/p>\n

\n

The market is clearly pricing in the approval of a #Bitcoin<\/a> ETF (probably futures based).<\/p>\n

Smart money typically "sells the news" (i.e. sells when the news actually occurs). In this case it would be unwise. The flow of funds unlocked by an ETF approval will be massive.<\/p>\n

— Vijay Boyapati (@real_vijay) October 15, 2021<\/a><\/p><\/blockquote>\n