Bitcoin surpasses $60,000 on Bitcoin ETF rumors

Bloomberg, citing sources, announced the readiness of the US Securities and Exchange Commission to approve the first Bitcoin ETF next week. Although the rumor turned out to be false, Bitcoin surpassed $60,000.

Citing to people familiar with the matter, Bloomberg reported that the US Securities and Exchange Commission (SEC) is ready to give the green light to the launch of the first bitcoin ETF linked to bitcoin futures rather than cryptocurrency itself. “The regulator isn’t likely to block the products from starting to trade next week,” an anonymous source said.

It later turned out that this is not about the official approval of a Bitcoin ETF, but about the launch of an exchange-traded fund from ProShares linked to Bitcoin futures, which does not require regulatory approval, since the fund does not appeal to the cryptocurrency itself.

However, the American regulator posted a warning to investors on social media regarding investing in bitcoin ETFs:

“Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”

NYSE Arca confirmed on Friday evening that the fund’s securities will appear on its listing on October 18.

The ProShares Bitcoin Strategy ETF, pegged to Bitcoin futures contracts, will be traded under the ticker BITO.

Although rumors of the long-awaited approval of the Bitcoin ETF have not been confirmed, the Bitcoin exchange rate responded with a sharp increase. By the end of Friday, Bitcoin was trading above $61,000. Market participants expect the SEC to approve a true Bitcoin ETF pegged to spot prices for the cryptocurrency itself in the near future.

Via: 2Coinfox.info

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