New shot of Bitcoin moving close to $ 60,000 for the first time in six months, approaching its all-time high, while traders express confidence that US regulators will soon approve the launch of an ETF, probably next week. based on its futures contracts. The SEC would indeed be close to allowing the U.S.’s first bitcoin futures ETF to begin trading next week, Bloomberg reports.
This month’s rally resulted in the cryptocurrency gaining over 35% in two weeks. The largest cryptocurrency in the world has risen to its highest level since April 17 and has risen by more than 50% since September 20 and now the All-time high of $ 64,895 appears close at hand.
The great expectation
Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds have applied to launch bitcoin ETFs in the US, and crypto ETFs have been launched this year in Canada and Europe. The president of the SEC Gary Gensler he said in the past few weeks that the cryptocurrency market involves many tokens which can be unregistered securities and leaves prices open to manipulation and millions of investors vulnerable to risk.
An exchange-traded fund is expected to attract more interest from investors who prefer to purchase a familiar, regulated product than navigating digital currency exchanges. On the other hand, there are those who foresee the risk that the arrival of the long-awaited news in recent weeks will bring it widely priced in the current values of bitcoin and can be welcomed with a substantial sell on news.
Bloomberg, citing people familiar with the matter, said the proposals ProShares e Invesco they are based on futures contracts and have been presented under mutual fund rules which according to Gensler provide “significant protections for investors”.
In recent months, the SEC has argued that the crypto universe is plagued by risks for investors. The SEC expresses concern that costs may be manipulated and liquidity may be inadequate, in addition to the drastic swings in Bitcoin’s value.
Yesterday the Russian president Vladimir Putin he said cryptocurrencies have value, although he is not convinced they can replace the US dollar in regulating oil trading. Cryptocurrencies “have the right to exist and can be used as a means of payment,” were Putin’s words.
Boe warns investors again: crisis risk similar to the subprime one
There is no shortage of alert items. Jon Cunliffe, deputy governor of the Bank of England’s financial stability division, warned that unless strict industry regulation is introduced, cryptocurrencies could trigger a global financial crisis similar to that of 2008.
Cunliffe compared the growth rate of the crypto market, which in five years saw its value soar from a capitalization of $ 16 billion to a $ 2.3 trillion, to the US subprime mortgage market, which in 2008 had risen to worth $ 1.2 trillion.
“When something in the financial system grows very fast, and grows in a heavily unregulated system, financial stability authorities need to be on the alert,” he added.