The value of Bitcoin touched a six-month high on Friday as traders were more confident that U.S. regulators will approve the launch of an exchange-traded fund based upon its futures contracts.
The world’s largest cryptocurrency recorded an appreciation of nearly 4% to $59,664, making it reach the highest level in the last six months. It is now close to April’s record of $64,895 and has nearly doubled its value.
Barely four months ago the crash in the cryptocurrency market impacted Bitcoin the most. Its value tanked below $40,000 triggering debate over the future prospects of Bitcoin.
Bloomberg News reported that the U.S. Securities and Exchange Commission is ready to allow the first U.S. Bitcoin futures ETF to trade next week. This was according to people familiar with the matter.
Ben Caselin, Head of strategy and research at Asia-based cryptocurrency exchange AAX, didn’t find bitcoin’s recent spike to $59,000 much surprising. He explains that it’s mainly due to the fact that long-term investors have been accumulating it for a while.
He stated that it was widely believed that Q4 would see significant progress in relation to a Bitcoin ETF in the U.S.
A tweet from the SEC’s investor education office, he stated, also spurred Friday’s actions.
Investors in the cryptocurrency market have been waiting for approval of the first national bitcoin ETF. Some of bitcoin’s recent rally has been in anticipation of this move and how it might speed up mainstream adoption.
Many fund managers have applied for the launch of bitcoin ETFs in America, including ProShares, Invesco, and Valkyrie, as well as VanEck Bitcoin Trust, ProShares, and Invesco. This year, cryptocurrency ETFs were launched in Canada and Europe.
Gary Gensler, SEC Chair, has stated previously that the crypto market includes many tokens that may not be registered securities. This leaves prices vulnerable to manipulation and millions of investors exposed to risk.
According to Bloomberg, ProShares and Invesco’s proposals were based on futures contracts. They were filed under mutual funds rules Gensler stated provide “significant investor protections”.
Investors’ resistance towards Bitcoin is slowly softening after getting influenced by the strongly-worded statement from the governor of the Bank of England, Andrew Bailey. He advises investors not to get influenced by the rally in the cryptocurrency market. In fact, another report from JP Morgan highlights that a majority of investors believe that Cryptocurrency is as dangerous as rat poison.