Bitcoin was sent rallying above $60,000 Friday morning, amid speculation that the SEC may allow America’s first bitcoin ETF to begin trading as early as next week.
According to CNBC, which cited people familiar with the matter, the SEC is poised to abstain from blocking bitcoin ETFs from Invesco and ProShares, marking a significant milestone for the crypto industry, which has long sought to receive permission from US regulators. The bitcoin ETFs are said to be based on futures contracts and were originally filed under mutual fund guidelines, which SEC Chair Gary Gensler appears to be more receptive to as they offer investors increased protection.
Once officially approved, the funds will allow traders to indirectly invest in bitcoin, and they will be based on bitcoin futures that are currently trading on the Chicago Mercantile Exchange. Up until now, the regulatory body has insisted that the frequent volatility typically accompanying crypto markets poses too much risk for the approval of ETFs and other related funds.
Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.