Bitcoin soared past the $60,000 mark to near its record high helped by optimism among traders that U.S. Securities and Exchange Commission (the U.S. SEC) would be giving a green light to launching an exchange-traded fund (ETF) based on its future contracts. Bitcoin breached the mark for the first time in six months.
Speculation surrounding the postulated approval has fueled the rise in bitcoin for some time now. This is being suggested as a landmark event paving the way for the adoption of unregulated digital assets in the mainstream. Bloomberg had reported on Thursday that the U.S. SEC was preparing to allow the first bitcoin futures ETF. It reported that people familiar with the development said the proposal by ProShares and Invesco was based on future contracts. They were filed under mutual fund rules that Gensler said provided "significant investor protections".
Asia-based cryptocurrency exchange AAX told Reuters that the speculation was further fueled by a tweet from the U.S SEC. It read:
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
The world's biggest cryptocurrency spiked 4.5 per cent to its highest level since April 17 and was last at $59,030, as per news agency Reuters. The agency adds that it hasd risen by more than half in value since September 20 and is now close to its all-time high of $64,895.