The flagship cryptocurrency, Bitcoin, broke through the $ 60.000 resistance zone for the first time since the market crash of May 2021. This bullish momentum in the trading session appears to be fueled by a report from Bloomberg, which cites unknown sources. , according to which the Securities and Exchange Commission US (SEC) will approve the first exchange-traded US Bitcoin futures fund (ETF) next week.
The report cites people who have asked not to be named and explains that the financial watchdog is unlikely to block products from the start of trading next week. The source said: "The regulator is unlikely to prevent products from starting trading next week."
Unlike Bitcoin ETF applications that the regulator previously rejected, ProShares and Invesco Ltd's proposals are based on futures contracts and have been filed under mutual fund rules that SEC Chairman Gary Gensler said provides "significant protections for investors ".
A futures product is likely to be the first to be approved as it is viewed more favorably by regulators. Futures are regulated by the Chicago Mercantile Exchange (CME) and require investors to deposit cash on margin to trade them.
What analysts say
Bloomberg ETF senior analyst Eric Balchunas said he is confident that the ProShares Bitcoin Strategy ETF could be the first to launch as the deadline for the decision is October 18. The Invesco Bitcoin Strategy ETF could be approved the next day, barring further delays by the SEC.
He tweeted: “JUST IN: Bitcoin futures ETF has said it does not face any opposition to the SEC, according to several sources confirming this (aside, I'm hearing the same thing). The deal is practically concluded. Expect the launch next week ”. He further stated: “As I said, until these little F-ers (ETFs) are literally traded on the stock exchange, I am not ready to close this case. But the odds are now over 90% IMO ”.
However, Eric shared his views stating that futures ETFs are imperfect. He said: “Most people reading this thread from the cryptocurrency world are probably pumped, but keep in mind that these ETFs are flawed in futures rotation and likely won't wipe out the nation, but rather ask for the dance to be. disabled. My guess is just. 3-4b in the first year (1% of ETF flows). But definitely a BIG step after 7 years of waiting ”.
The approval was for many years out of reach of broadcasters amid numerous rejections, a bit like what happened with gambling and casino online; and many have tried to obtain a variety of different licensed trading facilities. Over the years, there have been plans for funds that have proposed holding Bitcoin via a digital vault or that could use leverage to generate returns. Others have tried to mitigate Bitcoin's famous volatility, a key point of contention for the SEC.
The optimistic forecasts rise
SEC Chairman Gary Gensler has expressed support for CME-traded Bitcoin futures-based funds deposited under a 40s law, adding more weight to the potential for a long-awaited approval.
Meanwhile, well-known investors and industry figures such as Anthony Pompliano believe that the entry of a Bitcoin ETF would be a catalyst for an already explosive situation.
Bitcoin is back trading above $ 59.000 at the time of writing. The next round for the bulls is above $ 60.000, a move deemed the last piece of the puzzle as BTC claims all-time highs.
However, the party is not expected to end at $ 65.000, with speculation pointing to $ 100.000 by the end of 2021.
