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BTC Price Shoots Close to Its All-time High on Debut of US Bitcoin ETF

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by Bhushan Akolkar · 3 min read
BTC Price Shoots Close to Its All-time High on Debut of US Bitcoin ETF
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Post the launch of ProShares Bitcoin Strategy ETF, BTC price has been flirting around $64,000.

The world’s largest cryptocurrency Bitcoin (BTC) is trading pretty close to its all-time high levels after the US SEC approved the first Bitcoin ETF from ProShares on Tuesday, October 19. It is for the first time since April 2021 that BTC price has been trading above $64,000.

BTC Price Reacted to Bitcoin ETF Launch

As of press time, Bitcoin is trading 2.87% up at a price of $63,953 with a market cap of $1.205 trillion. The Bitcoin price is extremely close to its all-time high levels and we can witness a move above $65,000. It is clear that bitcoin is setting up the stage for the next big rally as many market analysts have predicted $100,000 and above levels by the end of the year.

Not to forget, the recent BTC price rally comes on the backdrop of optimism surrounding the Bitcoin ETF approval. As we reported, the ProShares Bitcoin Strategy ETF (BITO) saw a blockbuster debut on Tuesday. It also emerged as the second-highest traded fund in the market. Speaking to CNBC on Tuesday, Will Hershey, CEO of Roundhill Investments said:

“Trading volumes are exceptional. BITO has traded in excess of $700 million notional. That puts its first day well ahead of retail ETF favorites like BUZZ and ARKX when compared to their respective launch days earlier this year.”

SEC Chairman Has a Warning

For a long, the bitcoin community had been waiting for a Bitcoin ETF in the US market. However, the SEC has rejected multiple applications in the past citing concerns over investor protection. The ProShares Bitcoin ETF tracks the Bitcoin futures offered by the CME Group.

This approval comes as the SEC Chairman showed flexibility for a Bitcoin Futures ETF that follows the investor protection rules as applicable to mutual funds. Despite the recent approval, SEC Chairman Gary Gensler has a warning for investors. Speaking to CNBC on Tuesday, Gensler said:

“What you have here is a product that’s been overseen for four years by the U.S. federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection. It’s still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation.”

There have been multiple Bitcoin futures ETF applications awaiting at the SEC’s door for now. As per reports, the Valkyrie Bitcoin Strategy ETF is the next in line as could come as soon as later today.

Bitcoin News, Cryptocurrency news, Funds & ETFs, Market News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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