Crypto King -Bitcoin Back above 60K: As SEC moves to approve first US Bitcoin Futures ETF.

The Crypto market has witnessed great volatility last week with Bitcoin attempting to reclaim the previous All time high (ATH) since March at $64k but stopped short at $62,888 after the news of the possible approval of a Bitcoin ETF this new week with Proshare Trust topping the list of the applied exchange for such approval. The possibility of approving the Bitcoin ETF comes after a decade of rejection for all applied ETFs. The SEC Chairman - Gary Gensler has hinted last month that he would be open to the submitted applications which is due for final approval this new week. Bitcoin could hit 100k within a short while if finally approved this week.

The Crypto market has surged with great excitement last week with the news that the first Bitcoin ETF would begin trading next week after approximately a decade application for a Bitcoin ETF. The Securities and Exchange Commission (SEC) greenlighted bitcoin futures ETFs for the first time in the industry last week's Friday, after the regulators five commissioners met on the issue. ProShares, which filed for its Bitcoin Strategy ETF this past summer, would most likely be the first to launch a Bitcoin ETF next week. The company had submitted a post-effective amended prospectus to SEC on Oct. 15; stating its filing is expected to launch on Monday, Oct. 18, though the fund may not begin trading immediately as it will await a final approval from SEC to begin trading.

Equally, other exchange had as well submitted same application last week. Notably, crypto lender BlockFi Inc. and Cathie Wood‘s Ark Investment Management have put their names on applications for futures-backed Bitcoin ETFs, a structure that Securities and Exchange Commission Chairman Gary Gensler has hinted that he’d be open to. Meanwhile, Valkyrie Investments updated its futures-backed ETF prospectus with the ticker BTF on Wednesday suggesting that an approval is imminent.

All attention has been shifted to Proshares exchange, given the fact that SEC‘s deadline to reject or approve the issuer’s futures-based filing under the Investment Company Act of 1940 -- a route that offers higher investor protection -- expires this coming Monday.

Recall that SEC has in the past, explicitly rejected bitcoin ETF applications, but has currently put on a welcoming attitude towards approving one. Of course, the financial regulatory commission does not need to formally approve one. Under federal law, the SEC can just allow an application to become effective, rather than make a formal announcement.

However this time seems different and SEC had given auspicious body language and signs that it may approve the applied ETF. The SEC Chairman Gary Gensler has hinted that he‘d be open to the applied ETF. Gensler’s own words suggest this time is different. The SEC head signaled hed favor funds based on CME-traded Bitcoin futures in August - a stance that he reiterated late last month.

As expected, shares of Bitcoin in the stock market and exchange Market had skyrocketed by an addition of over $1,500 after the U.S. Securities and Exchange Commissions Office of Investor Education and Advocacy tweeted a June advisory about investing in funds that hold Bitcoin futures. Bitcoin had immediately attempted breaking the All time created in March at 64k before the great fall but had stopped short at $62,888 only a few about $1200 away from the previous ATH.

What is a Bitcoin ETF？

An exchange-traded fund (ETF) is an investment portal that tracks the price of a basket of underlying assets and is tradable on U.S. stock exchanges while protecting the identity of the traders. In this case, the funds would track the price of bitcoin futures traded on the Chicago Mercantile Exchange, rather than bitcoin itself and allow investors to take long positions on the market.

However these ETF are often future based and would not hold actual Bitcoin; instead they will deal in bitcoin futures, which trade separately on regulated U.S. exchanges such as CME. This would help in providing liquidity in the Crypto market as great number of investors are now permitted to trade Bitcoin while remaining anonymous.