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Bitcoin exceeds $ 60,000 as investors bet on ETF approval

Cryptocurrency investors were excited about a tweet of the SEC Office of Investor Education and Advocacy’s verified account on Thursday night, which read: “Before investing in a fund that holds Bitcoin futures, be sure to weigh the potential risks and rewards.” .

It seemed like a tacit admission that the SEC would soon give the regulatory green light to “a fund that holds Bitcoin futures”.

Many investment firms, including ProShares, Invesco, VanEck, and Galaxy Digital, have filed bitcoin futures ETFs with the SEC.

Another ETF company, Valkyrie, has also applied for a bitcoin ETF. On Friday, the Nasdaq revealed in an SEC filing that the Valkyrie fund was ready to go public – pending final SEC approval.

Bitcoin ETFs are a way for individual investors who don’t want to bother to mine – that is, use sophisticated hardware to solve complex mathematical problems that generate new bitcoin – to access other ways to buy and sell cryptocurrency.

And bitcoin bulls were waiting for the SEC to approve one, in the hopes that having an ETF will make it even easier for average investors to buy crypto.

“It seems clear that regulators will be approving a version of a crypto ETF soon,” said Chris Kline, COO and co-founder of Bitcoin IRA., Adding that “the SEC is starting to understand how these assets are stored. , secure, and reconciled to make sense in mainstream finance. ”

Brokerage firms like Coinbase and Robinhood allow bitcoin transactions, and there are also several ETFs that already invest in businesses related to cryptocurrencies and blockchain technology.

Bitcoin roller coaster

It’s been a month-long whirlwind for bitcoin. The world’s most valuable cryptocurrency surpassed the $ 50,000 level last week for the first time in four weeks and quickly surpassed $ 55,000 after the family office of billionaire investor George Soros revealed that ‘he was investing in bitcoin.

Bitcoin prices, which hit nearly $ 62,000 on Friday, are only about 5% below their all-time high of just under $ 65,000 that they reached earlier this year.

Investors are hoping that in addition to approving a bitcoin ETF, U.S. financial agencies will continue to take a more measured approach to regulating cryptocurrencies. Federal Reserve Chairman Jerome Powell and SEC Chief Gary Gensler have suggested the United States will not crack down on crypto as harshly as China.

“With the recent confirmation from Powell of the Fed and Gensler of the SEC that, although regulations are forthcoming, no Chinese-style crackdown is envisaged, this will reassure the broader institutional market which [bitcoin] is here to stay, ”said Seamus Donoghue, vice president of strategic alliances at METACO, a provider of digital asset infrastructure.

Prices have also continued to rise in recent times despite criticism from Bitcoin bear Jamie Dimon.

The JPMorgan Chase (JPM) The CEO said on the Axios HBO show earlier this month that bitcoin was “a bit of fool’s gold” with “no intrinsic value.”
Dimon also warned on the Axios show that “the regulators are going to fix it”. And if that wasn’t enough, Dimon called bitcoin “worthless” in a virtual appearance at the Institute of International Finance Meeting on Monday.



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