Cryptocurrency market last week: Bitcoin tops $ 61,500 thanks to Bitcoin ETF information

Cryptocurrency market last week: Bitcoin tops $ 61,500 thanks to Bitcoin ETF information. Bitcoin price exceeds 61,500 USD in 15, nearing an all-time high as traders bet that U.S. regulators will approve the first Bitcoin futures ETF. Traders are optimistic that the US Securities and Exchange Commission will give the green light to the first Bitcoin futures ETF.

Introduction of the first Bitcoin ETF?

ProShares ‘Bitcoin Futures ETF will start trading next week, according to ProShares’ filings released in late October. As of October 15, the US Securities and Exchange Commission (SEK) has not officially approved the launch of a Bitcoin futures ETF. SEK There are also no formal steps required to approve the application. Under federal law, an application can be valid if SEK Allow the required period to pass without requesting a change or requesting the issuer to withdraw. However, ProShares’ announcement shows that SEK They are unlikely to get in the way of ProShares.

On the afternoon of October 15, the NYSE issued Arca ProShares a listing license. Accordingly, this exchange enables investors to trade Bitcoin ETF certificates under federal law without investor intervention. SEK. A source near by SEK said this Bitcoin ETF will be allowed to trade next week.

The introduction of a Bitcoin ETF would be a major milestone in the digital currency industry, thereby increasing the adoption of digital assets on Wall Street.

“The news about the Bitcoin ETF has already reflected the positive developments in the market, with an expected adoption on October 18th,” Vijay Ayyar, Head of Asia-Pacific at Luno Exchange, told Cointelegraph. However, he also warned when SEK Rejecting Bitcoin ETF, Bitcoin price will go down.

In addition to the ProShares profile, SEK Starting next week, it is reviewing around 40 Bitcoin ETF registrations with multiple decision deadlines for products linked to futures. According to Bloomberg, the regulator is expected to approve at least some of these. This step clears the way for transactions to be initiated.

Bitcoin is making a strong comeback

On the morning of October 16, after positive news about a Bitcoin ETF, Bitcoin rose to $ 61,679, up nearly 14% over the past week.

Many other cryptocurrencies, like Ethereum, also flourished by more than 7% and topped 3,800 USD, while Binance Coin gained more than 12%.

The market capitalization of cryptocurrencies has risen sharply in the past week, from 2,300 Billion USD almost 2,500 Billion USD.

Price movements of the top 10 cryptocurrencies

Virtual asset warnings

Before, SEK Believes the digital currency market is exposed to risk from venture capitalists. SEK expressed concern that the price could be manipulated and that inadequate liquidity and the drastic price volatility of Bitcoin would become too much for individual investors. Aside from that, SEK questioned whether the funds would have the information they need to fully value cryptocurrencies or related products.

The Bank of England also warned of the dangers of the digital market. Bank of England Deputy Governor Jon Cunliffe, in charge of financial stability, warned that digital currencies could cause a global financial crisis if the parties don’t put tough controls in place.

The digital asset market is from 16 Billion USD (5 years ago) to 2.3 thousand Billion USD at this moment. In an October 13 speech, Mr. Cunliffe compared the growth rate of the digital asset market to the 1.2,000 subprime mortgage bond market. Billion USD 2008 in the USA.

“When something in the financial system is growing so fast that there is no oversight, the financial stability authorities need to keep an eye on it,” he said.

Mr Cunliffe also admitted that governments and watchdogs need to be careful not to overreact or view novelties like cryptocurrencies as “dangerous” just because they are different. He said virtual currency technology offers the prospect of “fundamentally improving” financial services.

Although the risks that virtual currencies pose to financial stability are currently limited, the Bank of England Deputy Governor said, existing digital asset applications raise financial stability concerns as most virtual currencies today “have no intrinsic value and” are easily subject to sharp price corrections “.

Bitcoin and Ethereum – the two largest digital currencies in the world – lost more than 30% of their value before “recovering”. This represents the notorious volatility of cryptocurrencies. The price is very easily influenced by external factors such as comments of the CEO Tesla Elon Musk or the tightened control of the virtual currency market by the Chinese government.

Vu Hao