Bitcoin (BTC) price rises on ETF speculation

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Art at the 2021 Bitcoin Cryptocurrency Conference at the Mana Convention Center in Miami on June 4, 2021.

Marco Bello | AFP | Getty Images

Bitcoin climbed above $ 60,000 on Friday, pushing the digital coin further to its all-time high, as traders speculated that U.S. regulators would wipe out the first bitcoin exchange-traded fund.

The world’s largest cryptocurrency jumped more than 8% to $ 62,307, according to Coin Metrics, reaching its highest level since April 17.

The Securities and Exchange Commission is expected to allow the first U.S. bitcoin exchange-traded funds to begin trading next week, a historic victory for a cryptocurrency industry that has long sought approval from Wall’s main regulator. Street, according to a person familiar with the matter. .

Specifically, the person said the SEC is unlikely to block ETFs offered by ProShares and Invesco, which are based on futures contracts and have been filed under mutual fund guidelines that SEC Chairman Gary Gensler thinks it offers investors significant protection.

The ProShares Bitcoin Strategy ETF is expected to debut on the New York Stock Exchange on Tuesday, and experts believe the SEC is unlikely to oppose the product.

The Bitcoin CME futures contract for October was last traded at $ 60,570, up around 4%.

Approval of an ETF that gives traditional investors exposure to bitcoin would be a milestone for the crypto industry, which has long advocated for greater acceptance of digital assets on Wall Street.

“ETF news is valued, with the market expecting approval on Monday. It pushes the price up,” Vijay Ayyar, Asia-Pacific manager at Luno cryptocurrency exchange, told CNBC .

However, Ayyar warned that a rejection of ProShares’ product could drive bitcoin down significantly.

Mikkel Morch, executive director of digital asset hedge fund ARK36, said bitcoin could surpass its all-time high of nearly $ 65,000 from April, but warned that the cryptocurrency could subsequently suffer a “short-term decline”.

“Investors should be aware that hopes of a sustained rally above the $ 60,000 mark and beyond the previous all-time high may as well turn into a ‘buy the rumor, sell the news’ scenario,” Morch said.

Not all cryptocurrencies were boosted by ETF news on Friday. Ether, the second largest coin, rose 0.5% to $ 3,804 on spot trading. However, XRP and ada both fell by around 2%.

Bitcoin and other cryptocurrencies have had a wild ride this year. The number one digital coin hit an all-time high above $ 64,000 in April, before collapsing sharply following a crackdown on the crypto market in China. It has since made a comeback and its price has more than doubled so far this year.

Regulators have taken a tougher stance on crypto this year as investor interest has grown. The industry has struggled, however, with Coinbase calling on the United States on Thursday to create a new regulator to oversee digital assets.

Earlier this week, Bank of England Deputy Governor Jon Cunliffe warned that cryptocurrencies could trigger a global financial crisis on a scale similar to that of the 2008 crash.

“When something in the financial system is developing very quickly and in a largely unregulated space, financial stability authorities need to sit down and take it into account,” Cunliffe said in a speech Wednesday.

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