Bitcoin’s price is skyrocketing, and some market experts attribute this to the SEC’s imminent Bitcoin ETF approval.
A Bitcoin ETF, or exchange-traded fund, is an investment product that allows investors to purchase shares representing a digital asset without actually having to deal with cryptocurrency. It is not yet available in the US as the SEC has repeatedly rejected applications for the product citing concerns about price manipulation in the crypto market.
The crypto industry has been waiting for a Bitcoin ETF to be approved in the US for too long. This expectation is essentially based on the belief that when an application finally gets the SEC’s approval, it will lead to an influx of institutional money flowing into the crypto market and push the price.
Currently, at least 13 high-profile companies have filed with the SEC to launch a Bitcoin ETF and are awaiting a response. And market experts think an application will likely eventually be approved on October 18th. The ProShares Bitcoin Strategy ETF is currently on the agenda with a deadline of October 18th.
Bloomberg ETF analyst Eric Balchunas said on Twitter, referring to SEC chairman Gary Gensler, “I think they’re going to accept a futures-based ETF, and when we look at the filing times, it could end up like October. According to me, the probability of being approved is 75%”.
A futures ETF allows investors to purchase shares that represent futures contracts rather than the digital asset itself. Such a product has been criticized before by those in the crypto space, who think that this is not what investors want. Regardless, such confirmation talk still seems to boost Bitcoin price.
“This is not a rumor – some believe it will be confirmed,” former banker and crypto trader Alex Kruger told Decrypt.
According to market analysts, Bitcoin futures traders appear to be “running ahead” as they wait for a positive announcement from the SEC regarding a Bitcoin futures ETF. “People are front-running a futures-based BTC ETF,” Mike Bucella, general partner at crypto VC firm Blocktower, said earlier today, based on current market activity.
It is still unclear whether this run will continue and whether the SEC has truly given the green light to the first crypto ETF in America. But we’ll just have to wait another 12 days to find out.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.