New York: On Friday, Bitcoin surpassed $60,000 for the first time in six months, approaching its all-time high, as expectations mounted that US authorities would approve a futures-based exchange-traded fund (ETF), paving the way for more widespread investment in digital assets.
Bitcoin investors have been waiting for the first US ETF to be approved, with bets on the move fueling the cryptocurrency’s recent climb.
The world’s largest cryptocurrency surged 4.5 percent to $59,290, its highest level since April 17. It has grown by more than half since September 20, and is approaching its April high of $64,895.
Traders and analysts believe that such a move would provide investors with a new way to participate in the rising asset.
According to Ben Caselin of Asia-based crypto exchange AAX, bitcoin’s swings on Friday were sparked by a tweet from the SEC’s investor education division advising investors to examine the risks and rewards of participating in funds that hold bitcoin futures contracts.
Several fund managers have applied to launch bitcoin ETFs in the United States, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds. Crypto ETFs have been introduced in Canada and Europe this year, and they are gaining popularity as interest in digital assets grows. According to SEC Chair Gary Gensler, the crypto market contains many tokens that may be unregistered securities, making prices subject to manipulation and exposing millions of investors to danger.
