Traders are confident that the United States Regulatory body will approve the exchange-traded fund (ETF). With this, the crypto world is experiencing an exciting moment. Bitcoin, the world-leading cryptocurrency, touched the six-month high on Friday and closed at $ 59,664.
The value is almost approaching its mid-April high of about US $64,895. Bitcoin almost doubled this quarter, with sources suggesting that the Securities and Exchange Commission (SEC) will allow the very first Bitcoin Futures ETF.
The regulatory body has previously rejected a Bitcoin ETF application. But this time, Invesco and ProShares filed the proposals as per the mutual fund rules and are based on future contracts. According to Gary Gensler, the SEC Chairman, this is going to provide significant protection to investors.
Officials from ProShares and the SEC spokesperson have declined comment on the matter.
Advocates of cryptocurrency have sought the mainstream approval of cryptocurrencies ever since Cameron and Tyler Winklevoss filed their fits application in 2013 for Bitcoin ETF. The duo is known for its significant contribution to the history of Facebook.
Over the years, the SEC has argued that the crypto space can prove hazardous to investors. They put forward their worries about manipulated prices, insufficient liquidity, etc., associated with the cryptocurrency.
The SEC is also concerned about the drastic Bitcoin price changes. A 74% loss, followed by gains of 95% and 305%, maybe too much to handle for individual investors. Apart from that SEC raised questions and concerns related to hacking, fund management, ownership validation, etc.
It is expected that four futures-backed Bitcoin ETFs will begin trading on the United States Exchange starting this month. Many crypto-based exchange-trading products are being launched across Europe and in Canada at the same time.