Bitcoin ETF approval appears to be rocking the market as Bitcoin hits a new all-time high, as we read more in our latest Bitcoin news.
Bitcoin price was up 3% last day, surpassing its all-time high of $ 64,804 in April. Currently, the top cryptocurrency is approaching $ 64,872, according to CoinGecko, and it could soar higher. BTC has risen since its drop to $ 30,000 in July, and most of the price movement came towards the end of the bad times in September. However, thanks to the approval of a Bitcoin ETF in the US, it’s now up 50%.
The working theory has it that BTC is rising due to the prospect that the US SEC will allow a Bitcoin ETF proposal to be implemented for the first time. However, the price flattened over the weekend after it became clear that the SEC would start trading the BTC futures-backed ProShares Bitcoin ETF a day ago. Now that ProShares is out there are other Bitcoin futures ETFs on the verge of driving the price up. An exchange traded Bitcoin fund, or ETF, is a financial instrument that tracks the price of BTC and trades like a stock, but the SEC hasn’t approved a fund for too long. Activating it will allow mainstream investors to incorporate ownership of BTC into their own retirement plans, which will fuel demand for BTC.
The Bitcoin futures ETF offered by ProShares works differently. So instead of tracking the price of BTC at any given point in time, it can track where investors think the price could go up. Bitcoin futures are already traded on derivatives exchanges, and while BTC-based ETFs are a less straightforward way to get exposure, SEC chairman Gary Gensler believes that because of the built-in consumer protection measures, he should be using them. A week ago, Arcane Research pointed to statistics on the Bitcoin futures exchange CME showing that institutional investors will come back online when prices go up:
“I think the bitcoin ETF discussion we’ve been seeing lately [has] Attract facilities. They might try to make a viable decision next week, but institutional investors are sure to be interested in October. “
Nobody is certain that the BTC price will stay as high as it is now. Dan Morehead, CEO of Pantera Capital, suggests that this bull run could take place once the BTC ETF becomes official, or it could start falling towards the end of the trading day. Morehead wrote:
“There is a saying on Wall Street: ‘Buy the rumor, sell the truth. Will definitely work in our room. “
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