Bitcoin breaks above $59K for the first time since May on BTC ETF FOMO

Key Takeaways

  • Rumors about possible ETF approval by the US Securities and Exchange Commission has sent Bitcoin prices soaring.
  • BTC is up over 100% since it fell below $29,000 in June.
  • With $60,000 in reach, bulls may rally to push tBTC above its all-time high of nealry $65,000.

YEREVAN (CoinChapter.com) — Bitcoin (BTC) prices got a major boost on Friday after rumors that the U.S. Securities and Exchange Commission (SEC) will not oppose exchange-traded funds that invest in crypto futures.

With only four days left for the approval deadline, the SEC came out with an advisory on Twitter about investing in a fund that holds Bitcoin futures contracts. 

While the SEC has not been very keen on allowing BTC ETF in the market over the years, the timing of the advisory has raised suspicions.

Those more optimistic about the winds of change have taken the tweet to indicate that the Commission has had a change of heart and will soon give the green light to Bitcoin ETFs.

As a result, the world’s largest cryptocurrency soared, crossing the $59,000 mark. That is the highest BTC has been since May 8, before its price fell sharply. The rally accounts for an over 38% spike since the beginning of Oct 2021. That also means that BTC has surged over 100% since it hit as low as $28,695 on June 22.

Recommended: U.S. SEC approves Volt Equity’s Bitcoin Revolution ETF.

Who will get the first Bitcoin ETF greenlight? 

Over the years, many companies have submitted applications with the SEC for approval to float ETFs in the U.S., including Galaxy Digital Holdings Ltd. and Fidelity Investments. The Grayscale Bitcoin Trust also famously forged a partnership with the Bank of New York Mellon, the oldest continuously operating bank in the U.S., to enter the ETF fray.

The race to get an ETF approved began in 2013 when Gemini founders Cameron and Tyler Winklevoss applied to the SEC for the Winklevoss Bitcoin Trust. 

According to Bloomberg, ProShares Bitcoin Strategy ETF is likely to be the first to get approval from the SEC next week. Others expected to follow suit include Valkyrie Bitcoin Strategy ETF (BTF) and Invesco Bitcoin Strategy ETF. 

The price of Bitcoin (BTC) surged above $69K after rumors that the Securities and Exchange Commission will approve Bitcoin ETFs next week.
List of pending ETF applications. Credit: Bloomberg

However, only time will tell if the SEC approval rumors hold any merit or will result in massive sell-offs should the Commission end up refusing to grant approvals.

Recommended: Grayscale partners with BNY Mellon around Bitcoin ETF Plans

$60K in sight, Bitcoin headed for ATH? 

Thanks to the100% rally since June, the largest cryptocurrency in the world looks confident to surge past the $60,000 mark. 

With the current run purely based on speculation, the opportunities for BTC will be massive should the SEC approve any ETFs next week. 

Bitcoin is currently less than 10% below its all-time high of $64,804, which it attained on April 14. 

The price of Bitcoin (BTC) surged above $69K after rumors that the Securities and Exchange Commission will approve Bitcoin ETFs next week.
BTCUSD on TradingView

Days back, the SEC approved Volt Equity’s Volt Bitcoin Revolution ETF. Unlike direct Bitcoin ETFs, the fund provides indirect exposure to BTC via companies that hold assets in Bitcoin. 

With the token hoping to reach $100,000 by the end of 2021, the ETFs may well prove to be the catalyst Bitcoin needs to make the mega run in the next two months. 

However, the bears can take over and start sending the price down if BTC proves to be overbought because of the news. In that case, we can expect to see blood in the market. As of now, all eyes remain on the Securities and Exchange Commission. 

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