Bitcoin is rising in 2 weeks due to rumors of SEC approval of BTC ETF

Bitcoin surged on rumors from the SEC that the agency would approve a Bitcoin ETF in 2 weeks, and now we can see the price of that cryptocurrency rise 8% to over $ 55,000 today.

BTC price is rising and some are putting it at the BTC ETF level with the upcoming SEC approval. A Bitcoin ETF is an investment product that allows investors to buy stocks that represent digital assets without having to deal with the cryptocurrency themselves. ETFs do not yet exist in the US because the SEC has rejected the product application and raised concerns about price manipulation in the market. The industry has longed for an approved Bitcoin ETF and expected that an ETF would result in a massive inflow of institutional money into the market and drive the BTC price even higher.

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Currently, around 13 companies have filed for ETF with the SEC and are pending a response. ETF pundits say it will likely be approved on October 18, so Bitcoin is rising following rumors from the SEC of an apparent ETF approval. However, this means that the SEC will approve a Bitcoin futures ETF, not an ETF that tracks the BTC spot market. Bloomberg ETF analyst Eric Balchunas noted:

“Future ETFs filed under the 40s Act (which Genz loves) are very much alive and likely on schedule (we believe they are 75% likely to be approved by October).”

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Futures ETFs will allow investors to buy stocks, which are futures contracts, in order to bet on the price of Bitcoin rather than the digital asset itself. These products have been criticized by cryptocurrencies for believing that it is not what investors want, as they will be less liquid and more expensive for both issuers and investors than spot products, according to crypto purists.

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These approval talks are pushing the price of Bitcoin, and at the time of writing, the asset has gained more than 8% on the last day, hitting $ 55,000 before falling to $ 54,811. Trader and former banker Alex Kruger said:

“When it passes, there will be a future. It’s not a rumor – some believe it will be approved. Ironically, that would be a terrible product: the SEC remains concerned about market manipulation and the lack of agreements with exchanges to give them visibility. They have always been like that, and that has not changed. “

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