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BITCOIN HITS NEW ALL-TIME HIGH. SEC YET TO APPROVE PURE BITCOIN-BACKED ETF.

BITCOIN HITS NEW ALL-TIME HIGH. SEC YET TO APPROVE PURE BITCOIN-BACKED ETF. WikiBit 2021-10-28 16:24

Bitcoin price hit a new all-time high of $67,000 on Oct. 20, The new high was slightly above the $64,895 high that was created in April 2021. But, the price turned for worse as the market deepened back to the $60,000 support. The bulls found it hard to hold the price at the new all-time high, and this raised concern about the market strength.

Bitcoin price hit a new all-time high of $67,000 on Oct. 20, The new high was slightly above the $64,895 high that was created in April 2021. But, the price turned for worse as the market deepened back to the $60,000 support. The bulls found it hard to hold the price at the new all-time high, and this raised concern about the market strength.

Data from TradingView revealed that BTCUSD hit a low of $59,953 on Bitstamp, losing over 7% in two days.

The price found support just below the $60,000 price level and rebounded quickly, but caution remained the name of the game as the price hovers around $61,000.

The price of Bitcoin is presently trading at $61,262 at publishing time.

The $62,000 zone was a crucial level to hold the price. And as the market went below it, a correction is still in place. The market had already created a lower high sequence at $65,000 and $63,700 on the 4hr chart.

$55,000 - $57,000 price zone is a good buy spot for Bitcoin as the correction deepens.

Being optimistic, as is customary, can only come from those adopting a long-term perspective. Popular Twitter analyst, TechDev, stressed that 2021 was still conforming to historical bull market trends.

“Final BTC impulse has ALWAYS been five degrees steeper than the run-up to the mid-cycle peak,” he tweeted.

“Holding true so far. If it continues, and the $228K–$250K window is hit (two most historically reliable fib-based targets)... It would happen end of Jan. Will be interesting to watch.”

Meanwhile, regulatory bodies are slowly coming to terms with Bitcoin as an asset. The United States Securities and Exchange Commission is rumored to soon accept a pure Bitcoin backed exchange-traded fund. The SEC approved a Bitcoin-adjacent ETF, allowing investors to gain exposure to Bitcoin through the stock markets, and the most recent acceptance was that of the ProShare Bitcoin Strategy ETF, which started trading on NYSE on Oct. 19.

It is paramount to note that the aforementioned exchange-traded fund is not pure crypto ETFs and merely tracks either crypto-related company stocks or futures contracts.

Unlike Canada, the SEC has yet to approve a pure-crypto ETF. Canada regulators approved three Ether-based ETFs from three different firms; Purpose Investments, Evolve ETFs, and CI Global Asset Management.

Volt Equity CEO and founder, Tad Park, believes that the United States regulators have a fair reason to be slow in approving a pure Bitcoin-related exchange-traded fund (ETF).

He voiced his support for the U.S. SEC regarding the regulators' reluctance to approve an ETF that would track Bitcoin directly in a Fox Business interview on Tuesday.

He argued that SEC Chair Gary Gensler “actually is pro-Bitcoin” but is also “a little bit misunderstood” regarding his perspective on crypto regulation in the United States.

Park specifically referred to the SECs investor protection concerns, namely that crypto custody providers have yet to assure the commission that they can ensure proper asset protection:

“I can say ‘I have a gold ETF or a Bitcoin ETF,’ but I‘m storing that gold in my basement. Is the SEC going to allow that? Probably not. Unless companies can show they can custody it and actually address a lot of the issues Gensler specifically mentioned, it’s not going to work.”

The CEO added that “at least half” of current crypto ETF applications with the SEC “are not even valid” because “they are not addressing what Gary Gensler is saying.”

Park emphasized that Volt Equitys crypto ETF does not provide direct exposure to Bitcoin but instead tracks major Bitcoin-correlated companies, including MicroStrategy, Tesla, Twitter, Square, as well as Bitcoin mining companies such as Bitfarms.

“We try to get at what people are actually looking for, which is a correlation to Bitcoin‘s price movement. These companies are really focusing on Bitcoin and get the majority of their income and revenues from Bitcoin. It makes sense that they tend to move along with Bitcoin’s price,” He noted.

The SEC has yet to approve a pure Bitcoin-backed ETF. On Oct. 1, the SEC extended the deadline for four Bitcoin ETFs, including Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF. In August, Gensler suggested that the regulator might be open to approving Bitcoin futures ETFs.

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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