 |
| Bitcoin nears 6-month high |
Bitcoin is approaching a 6-month high as the first US Bitcoin futures ETFs are expected to be listed, which investors hope will add to the volume of crypto trading.
Unless the Securities and Exchange Commission objects, the ProShares Bitcoin Strategy ETF will be completed within 75 days of the fund manager submitting the plan. Trading could start on Tuesday.
Other fund managers may list ETF-based bitcoin futures trading funds in the coming days and weeks. This could lead to larger investments in digital assets.
The world's largest cryptocurrency was valued at $62,944 on Friday, close to a six-month high and not far from its April high of $64,895.
The topic of a wide range of futures-based ETFs is no stranger to those who keep a close eye on this field. For many people, this is a step forward. But not the change that some people feel.
Fund managers who have requested the launch of Bitcoin ETFs in the US are VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie and Galaxy Digital Funds.
Nasdaq has approved the listing of the Valkyrie Bitcoin Strategy ETF. Grayscale, the world's largest cryptocurrency management company, is planning to convert its flagship product, Grayscale Bitcoin Trust, into a Bitcoin ETF on the spot market.
After months of touring between the US Securities and Exchange Commission and potential issuers of bitcoin futures ETFs. It looks like the regulator is ready to give the go-ahead for certain uses. This will open the door to a wider use of cryptocurrency by private and institutional investors.
ETF futures on bitcoin wins
According to a set of rules used by issuers of ETFs. The SEC does not have to explicitly approve ETFs. If the US regulator is not against it, it can be filed after the 75-day period has expired.
Cryptocurrency investors expect that the approval of the first Bitcoin ETF in the US will lead to an influx of funds from companies and institutions that are currently unable to invest in cryptocurrency.
Rising concerns about global inflation have also increased the demand for the limited supply of Bitcoin. This is in stark contrast to the massive amounts of currency that central banks have issued over the past few years. Monetary authorities print money to stimulate the economy.
More and more investors believe that inflation may not be temporary. Bitcoin is likely to be chosen as a hedge against inflation.