The US Securities and Exchange Commission’s (SEC) approval of a Bitcoin (BTC) Exchange-Traded Fund (ETF) has come as a pleasant surprise to the Bitcoin community in the midst of a global regulatory crackdown on cryptocurrencies. The much-anticipated ProShares Bitcoin Strategy ETF is expected to debut on Monday, October 18. This ETF will be traded under the ticker symbol BITO and will track Bitcoin futures.
Bitcoin is surging towards $100,000.
Instead of obtaining regulatory approval, Bitcoin price crossed $62K this morning with a slight correction, and BTC remained strong at $61.5K at the time of reporting. The market is rife with speculation that Bitcoin will surpass $100,000 with the help of this ETF. The timing couldn’t be better, as the fourth quarter has kicked off the holiday season bull run, with trader bonuses pouring in as cryptocurrencies continue to rise. Since the beginning of October, when the potential BTC ETF gained widespread attention, the impact on Bitcoin prices has also become clear.
This Bitcoin ETF will help to increase institutional adoption of the decentralized sphere, specifically Bitcoin. “An ETF should make it easier for retail investors to ride Bitcoin’s often terrifying ups and downs.” It will trade on relatively familiar U.S. stock-market venues, similar to securities tracking oil and gold, rather than in cryptocurrency or futures exchanges, the workings of which are unfamiliar to some users.”
A token’s regulatory approval can make or break it.
Despite being a decentralized and unregulated market, the frequently validated fact that regulatory approval radically aids the growth of cryptocurrencies continues to gain credibility. XRP is one of the most prominent examples of how being submerged in a regulatory quagmire can keep certain tokens in a bearish rut while the rest of the industry enters a bullish phase. The XRP community continues to suffer as a result of the ongoing XRP lawsuit against Ripple, as the fourth quarter has not been kind to XRP thus far. The community accuses the SEC of intentionally extending the lawsuit so that XRP misses out on this bull run.