On Friday, Bitcoin reached $60,000 for the first time in six months, approaching its all-time high, as traders became optimistic that US authorities would allow the launch of an ETF based on its futures contracts.
Investors in digital assets have been waiting for the first US ETF to be approved, and bitcoin’s current surge has been fueled in part by expectations of such a move, which is regarded as hastening the mainstream acceptance of digital assets.
Bitcoin, the world’s most popular cryptocurrency, surged 4.5 percent to $59,030, its highest level since April 17. Since Sept. 20, its value has increased by more than half, and it is currently near to its all-time high of $64,895. Securities and Exchange Commission (SEC) is likely to approve the first U.S. bitcoin futures ETF to begin trading next week.
“It’s commonly believed that major development on a bitcoin ETF in the United States will take place in Q4,” said Ben Caselin, head of research and strategy at Asia-based cryptocurrency exchange AAX.
“Before investing in a fund that contains Bitcoin futures contracts, make sure you thoroughly consider the possible risks and rewards,” the SEC’s investor education division said in a tweet on Friday, he added.
Several fund managers have applied to create bitcoin ETFs in the United States, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds. This year, cryptocurrency exchange-traded funds (ETFs) were introduced in Canada and Europe.
“We’ve seen more institutional buildup in the last few weeks than we’ve seen since the (bitcoin price) drop in April,” said Noelle Acheson, head of market analytics at Genesis Global Trading.