Bitcoin is treading water above USD 30,000; SEC Approves First Leveraged Bitcoin Futures ETF

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Bitcoin plunged but held above the US$30,000 threshold on Monday morning in Asia, with almost all other non-stable cryptocurrencies in the top 10 rising. The gains follow a number of traditional financial institutions showing interest in launching crypto-related exchange-traded funds (ETFs), and the US securities regulator on Friday approved the first Bitcoin futures ETFs. leverage in the country.

bitcoin little changed

Bitcoin was down slightly by 0.35% to $30,444 in the past 24 hours as of 7:30 a.m. in Hong Kong, according to data from CoinMarketCap. The world’s largest cryptocurrency by market cap is up 15.44% in the past seven days.

Ether gained 1.18% to US$1,898, with a weekly gain of 10.32%.

Polkadot led the gains among the top 10 non-stable cryptocurrencies rising 3.28% over 24 hours to post a weekly gain of 14.28%. Next to Bitcoin, Litecoin was the only token on the list to decline, falling 1.48% in the past 24 hours but up 14.24% for the week.

On Friday, the U.S. Securities and Exchange Commission (SEC) approved the first leveraged Bitcoin futures ETF offered by Florida-based Volatility Shares, CoinDesk reported. The 2x Bitcoin Strategy ETF is expected to begin trading on June 27 on the CBOE BZX Exchange, according to the fund’s website.

The ETF will not invest in Bitcoin directly but will seek to benefit from single-day Bitcoin futures price increases, according to its prospectus. The fund will match twice the return of the S&P CME Bitcoin Futures Daily Roll Index.

This comes after BlackRock and WisdomTree recently filed with the SEC to launch spot Bitcoin ETFs. The regulator has given the green light to a number of futures-based crypto ETFs, but has not approved spot products.

The turbulence of 2022 has led to a decline in confidence in crypto-native institutions, presenting traditional financial institutions with an excellent opportunity to enter the crypto market, said Jonas Betz, crypto market analyst and founder of the consulting firm Betz Crypto, in Forkast last week.

Additionally, New York-based investment bank JPMorgan Chase & Co. has launched euro-denominated transactions on its blockchain-based payment system, JPM Coin, Bloomberg reported on Friday.

JPM Coin allows customers to transfer Euros or Dollars held in their JPMorgan accounts immediately and at any time of the day, unlike traditional banking transactions which typically operate during business hours.

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