Bitcoin soars beyond $60k amid reports that US SEC ready to approve BTC ETF trading

The foremost cryptocurrency, Bitcoin has broken the $60,000 mark after a five-month dip. This surge is said to be an effect of unconfirmed reports that the United States Securities and Exchange Commission (SEC) is ready to approve trading of U.S. Bitcoin futures exchange-traded fund (ETF).

The cryptocurrency market has experienced a series of highs and lows this year. A significant high was when Bitcoin hit an all-time high of nearly $65,000 in April before crashing upon the announcement of China’s crypto ban.

In the past, Bitcoin ETF applications have been rejected by the SEC. But reports claim proposals by ProShares and Invesco Ltd. are based on futures contracts and were filed under mutual fund rules. US SEC Chairman, Gary Gensler reportedly said the new proposals provide “significant investor protections.”

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ProShares and Invesco Ltd are investment management firms that manage dozens of exchange-traded fund (ETF) products, all designed to perform specific speculative investment strategies.

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Set to open trading on Monday, the fund launch will be the culmination of a nearly decade-long campaign by the $6.7 trillion ETF industry. And Luno’s head of Asia Pacific, Vijay Ayyar told CNBC that this is what is driving prices up.

“The ETF news is being priced in with the market expecting an approval on Monday. This is driving the price up.”Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno. Source: CNBC

According to a source, the SEC is unlikely to block the trade but the Luno head warned that a rejection could cause the coin to slump.

“However, we are at high time frame resistance here around 58-60K, hence a rejection on the ETF application could send Bitcoin back to 53-55K levels. But overall the trend is still bullish and there are a number of other ETF applications in the pipeline as well,” he said.

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Optimism amid calls for crypto regulations

There have been calls for regulations in the crypto market. Over the years, there have been plans for funds that proposed to hold Bitcoin via a digital vault or that could use leverage to juice returns.

The SEC had expressed concern that prices could be manipulated and liquidity might be insufficient and that Bitcoin’s drastic price swings may be too much for individual investors. There have also been questions about validating ownership of the coins held by funds and the threat from hackers.

In all, the prospect of trading ETFs gives mainstream investors exposure to bitcoin and would be a landmark for the crypto industry, which has long been pushing for greater acceptance of digital assets on Wall Street.

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