Bitcoin nearing all-time highs, boosted by US ETFs
Bitcoin continued to extend its gains this weekend, after hitting six-month highs around $61,000 on Friday. The most traded of digital currencies is changing hands above $62,000 on Monday, boosted by investor optimism around the imminent approval of the Bitcoin exchange-traded fund based on futures contracts that, according to 'Bloomberg', the US Securities and Exchange Commission (SEC) will be approved "imminently", even as soon as this week.
"The all-time high around $65,000 is in sight," Jeffrey Halley, analyst at Oanda, notes. "And a daily close above that level tilts the technical picture to further gains targeting $80,000.00 going forward," the expert adds.
"The reigning cryptocurrency shows, once again, the robustness of its fundamentals and the firm conviction of millions of investors, individuals and institutions, who see it as an asset with great potential," states Alejandro Zala, country manager of Bitpanda in Spain. "The annual revaluation of Bitcoin is now more than 110% and everything seems to point to a very positive last quarter," he adds.
The green light for the ETF is one of the most anticipated events in the history of cryptocurrencies and analysts claim it will be a bigger repulsive for the 'cryptoverse' than Tesla founder Elon Musk's $1.5 billion cryptocurrency purchase earlier this year. The lucky firms will be ProShares (on Monday) and Invesco. However, 'Bloomberg' notes that four Bitcoin ETFs backed by these derivatives could start trading on U.S. exchanges this month, as deadlines for VanEck and Valkyrie applications are also approaching.
Halley explains that the importance of this step lies in the fact that if "you are an investor that is mandated to only have exposure to regulated markets, then this could be your chance to get involved."
Dozens of cryptocurrency exchange-traded products have launched in Canada and across Europe to date. And barring a last-minute setback, the fund launch will be the culmination of a nearly decade-long campaign by the $6.7 trillion ETF industry since 2013 when twins Cameron and Tyler Winklevoss filed their first application for such a product.
ETF'S AWAITING SEC VERDICT.
On Monday, Oct. 18th 2021, the SEC's deadline to request amendments to ProShares takes place. As 'CoinDesk' explains, the regulator does not need to take formal action to approve the requests. Under federal law, applications can automatically become effective if the SEC allows a mandatory deadline to pass without requesting changes or ordering the would-be issuer to withdraw the filing. Tomorrow, Tuesday the 19th, is Invesco's turn, and for Valkirie and VanEck, the deadline expires on the 25th.
Three other exchange-traded funds have November deadlines: Galaxy Bitcoin Strategy and Advisorshares, on the 1st and 3rd, respectively. And then Bitwise on the 28th, while at the end of December BlockFi and Ark Investments await their turn.