BCGAME - Free 5BTC Daily Bonus!Bitcoin price surged 8% today, rising above $55.000, largely based on expectations that the SEC will approve a BTC ETF on Oct. 18, experts say.
The price of Bitcoin is skyrocketing – and some are attributing it to an impending SEC approval of the Bitcoin ETF.
A Bitcoin ETF, or exchange traded fund, is an investment product that allows investors to buy shares that represent a digital asset without having to deal with the cryptocurrency themselves. There is still no one in the US because the SEC has repeatedly rejected orders for the product, citing concerns about price manipulation in the encryption market.
The cryptography industry has been yearning for the passage of a Bitcoin ETF in the United States, and the expectation is that when someone finally gets SEC approval, it will lead to a flood of institutional money flowing into the crypto market, pushing up the price. of Bitcoin further up.
At present, at least 13 major companies have asked the SEC to launch a Bitcoin ETF and are currently awaiting a response. And ETF experts say it's likely to finally pass on October 18th. The ProShares Bitcoin Strategy ETF is the one scheduled to expire on October 18th.
There's only one problem: it means the SEC can approve a Bitcoin futures ETF, not one that monitors the Bitcoin spot market.
"The future ETFs filed under Act 40 (which Genz loves) are very much alive and probably on schedule (we think 75% chance passed in October)," said Eric Balchunas, analyst at Bloomberg ETF, on Twitter, referring to up to SEC chairman Gary Gensler.
Yes, the SEC has kicked on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. 40% chance approved in Oct). Here's our odds: https://t.co/cSZ8aDsITl pic.twitter.com/DUEvRANvO7
— Eric Balchunas (@EricBalchunas) October 2, 2021
A futures ETF would allow investors to buy stocks that represent futures contracts (which bet on the Bitcoin price going up and down), rather than the digital asset itself. This product has previously been criticized by those in the cryptosphere because they claim it's not what investors want. That's because, cryptopurists say, it would be less liquid and more expensive for both issuers and investors compared to a spot product.
While this talk of an approval seems to still be pushing the Bitcoin price up. As of this writing, the asset has risen over 8% in the last 24 hours – and hit $55.000 before dropping back down to $54.811.
“If it passes, it will be a future,” former banker and crypto dealer Alex Kruger told Decrypt. “It's not a rumor – some strongly believe it will pass,” he said.
Kruger added: “Ironically, it would be a horrible product: the SEC is still worried about market manipulation and the lack of agreements with exchanges to give them visibility. They've always been like that, and that hasn't changed. ”
This is what crypto markets are trading now. The dominant narrative is a bitcoin ETF. Dissapoint or not, you can worry about that later. https://t.co/aIv3BFZqI4
- Alex Kruger (@krugermacro) October 6, 2021
According to market analysts, Bitcoin futures traders appear to be “ahead” of what they expect will be a favorable SEC announcement regarding a Bitcoin futures ETF. Mike Bucella, general partner at crypto firm VC Blocktower, tweeted earlier today that he believes “the folks are running a futures-based BTC ETF” based on current market activity.
CME Futures basis in BTC blew out over last 24 hours,
my guess,
1) Folks are front-running to futures-based BTC ETF
2) Short are getting margin-called,
And, likely both.Allowing BTC to break from other risk-assets, driving the inflation/gold narrative at just the right moment.
— Mike Bucella (@MikeBucella) October 6, 2021
Much of the Bitcoin futures action in the United States takes place on the Chicago Mercantile Exchange (CME), which has experienced a surge in interest in futures contracts as institutional investors show more interest in the world of cryptocurrencies. Today, CME Bitcoin futures trading volume increased by 7,49%, which may help explain why the Bitcoin price rose 8%.
Whether this race will continue and whether the SEC actually gives the green light to the first crypto ETF in the United States remains to be seen. But we'll just have to wait another 12 days to find out.
