Tuesday, April 23, 2024

BTC price rises to $56,000 as bulls resurface and debate turns to the possibility of a Bitcoin ETF

Backers of Bitcoin might need to wait for any assurance of an exchange-traded fund (ETF) linked to Bitcoin. Todd Rosenbluth from CFRA Research remarked about the same to CNBC. Over the last fortnight, Bitcoin’s price has gone up by 35%. The rise is due to the optimism of investors about the United States Securities and Exchanges Commission’s plan to approve Bitcoin ETFs. However, as things stand now, investors will have to wait for more time to see if their hopes materialize. As it stands now, over 12 firms are on hold by the United States Securities and Exchanges Commission for their ET applications. Some companies like Amplify ETFs and Global X have embarked on blockchain-focused broader cryptocurrency products. According to Rosenbluth, we may have to wait until 2022 to have a more clear understanding of the regulatory debates. Only then can any final decision on ETFs be taken.

The concern of the United States Securities and Exchanges Commission is with the inconsistency between futures and Bitcoin prices. The danger of cross-border investments and the risk of funds getting too big and pushing limits are also among the SEC’s concerns. Bitcoin futures strategies have the potential to underperform by as much as 20% in a year. Until the United States Securities and Exchanges Commission has a more in-depth understanding of the bitcoin markets, they are unlikely to approve a Bitcoin futures ETF.

For many months now, the United States Securities and Exchanges Commission is in a conflict on how to put regulations on cryptocurrencies. The debate surrounding Bitcoin ETFs is an extension of that same debate, and experts do not expect any decision until the conflict is sorted out.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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