Bitcoin surges to over $ 60,000 amid rumors of US SEC-approved BTC futures

The most popular cryptocurrency, Bitcoin, surged above $ 60,000 for the first time since April 2021. Bloomberg reports that the BTC futures ETF has been approved by the US Securities and Exchange Commission and is about to be released.

Bitcoin surges above $ 60,000 amid rumors of US SEC-approved BTC futures ETFs

BTC surged from $ 57,300 to over $ 60,000 in a matter of hours before correcting downward. However, at 17:23 UTC, BTC hit $ 62,000 and was trading at $ 61,791. The price increased 8% in one day and 15% in a week.

The report says the regulator is unlikely to block trade in products next week, citing people who asked to remain anonymous while discussing the decision. Four futures-backed Bitcoin ETFs could be trading on the US exchanges this month, with VanEck and Valkyrie’s application deadlines also approaching.

Meanwhile, the SEC’s Office of Investor Education and Advocacy on Thursday urged investors to ensure they “carefully weigh the potential risks and benefits” “before making any investment.”

This month the SEC cleared an ETF marketed by ETF issuer Volt Equity that aims to track companies that have most of their assets in Bitcoin or generate most of their income from operating services.

As reported, a covered ETF futures – known as “paper bitcoin” – would hardly have a major impact on the bitcoin supply that is actually available. Such an ETF can still be useful, especially since it greatly simplifies things for institutional investors from a regulatory point of view and also enables the purchase of Bitcoin as part of a portfolio.

However, some analysts warn the crypto community that they may overestimate the demand for such an ETF. For example, Bloomberg expects only about $ 4 billion in demand for an exchange-traded fund in the first 12 months. This number represents only about 1% of Bitcoin’s market capitalization and about 3% of all Bitcoin futures contracts traded.

“The all-time high of $ 65,000 would be the next level of resistance before a possible pricing phase. While the price of BTC has risen in recent weeks, Bitcoin balances on the exchanges remain at a 9-month low, “investor Will Morris, sales trader at UK-based digital asset broker GlobalBlock, said in an e- Mail comment.

Meanwhile, investors and industry giants like Anthony Pompliano believe the entry of a Bitcoin ETF will be the catalyst for an already explosive situation.

The party is not expected to end at $ 65,000, with speculation heading for $ 100,000 by the end of 2021.

Note that the general technical picture is quite stable based on the daily chart. Indicators such as MACD and RSI confirm the presence and growing influence of the bulls. Therefore, the slightest resistance is likely to continue to rise.

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