Bitcoin Briefly Tops $60K Ahead of Expected BTC Futures ETF Approval

The world’s leading cryptocurrency has been on a tear since the start of October, and is now eyeing new heights as the U.S. Securities and Exchange Commission (SEC) is reportedly set to approve the first Bitcoin exchange-traded fund (ETF).

According to a Bloomberg report late on Thursday which cites sources familiar with the matter, the SEC isn’t likely to oppose the launch of a Bitcoin futures ETF. The current filings in question include applications from ProShares and Invesco, respectively.

Bitcoin Pops on Expectation of BTC Futures ETF Approval by SEC

The deadline is days away for SEC action on two applications for ETFs (exchange-traded funds) tied to Bitcoin futures, and Bitcoin has been climbing steadily all month on rumors that the applications could sail through. On Thursday evening, Bloomberg reported that the SEC will allow the ETFs, which are from ProShares and Invesco, to begin trading next week. (The report cited anonymous sources.) The news sent Bitcoin more than 4% higher in under an hour, to $59,400. Its all-time-high was nearly $...

The price of Bitcoin jumped from roughly $57,300 to $60,000 early Friday morning shortly after the news broke, according to CoinGecko. The last time Bitcoin traded above $60,000 was on April 18.

Despite correcting to $59,278 by press time, Bitcoin is still up 9.8% over the last week, remaining the best-performing asset among the five largest cryptocurrencies.

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Bitcoin futures ETF preferred

Due to SEC chair Gary Gensler’s previous statements, in which he hinted that he’d be more inclined to see an ETF tied to Bitcoin futures, rather than the one tied to the actual asset, the former are currently seen as the most viable way to launch a regulated crypto investment vehicle.

Some high-profile figures within the industry, however, are not as enthusiastic about the prospect of Bitcoin futures ETFs.

"People don't want Bitcoin futures exposure, they want physical Bitcoin exposure," Bloomberg ETF research analyst James Seyffart told Decrypt in August.

Bitcoin ETF Hopefuls Were Rattled by SEC Chair Comments. Here’s Why

Bitcoin ETF applicants in the U.S. have been shaken by SEC Chair Gary Gensler's latest comments about the cryptocurrency market.  Many of the firms that have recently petitioned the SEC for its approval to launch a Bitcoin ETF, including Anthony Scaramucci’s Skybridge Capital, were bullish that Gensler—who had previously expressed an interest in crypto as a “catalyst for change”—would at last greenlight the investment product that has eluded the crypto market for years. But in comments made Tues...

According to Matt Hougan, the chief investment officer at Bitwise Asset Management, a futures-based ETF can be “useful for certain investors, but not ideal” as it comes with up to 12% extra fees on the product.

In addition, as Hougan wrote in a Twitter thread on Thursday, there’s about a 15% dilution due to the current rules that limit the percentage of futures ETFs can hold.

“Most [futures ETFs] aim for 85%. So, 15% is other stuff, even bonds!” he said.

Hougan believes that “a direct BTC ETF avoids all that,” and this belief is reflected in a new ETF application Bitwise submitted on Thursday, two years after the firm’s original filing was rejected by the SEC.

This latest filing, as Hougan stressed, is a separate one from the Bitcoin futures ETF application submitted by Bitwise last month.