Bitcoin price has broken through the $60k resistance, as traders rejoice at the growing possibility of the first crypto ETFs, or Exchange-Traded Funds, to be approved by the US SEC.
ETFs are financial products that track an asset, allowing to invest in it without actually buying it. Traditional investment companies in the US already can get a crypto exposure with Grayscale and akin, but middle-class investors who wish to add it into their life insurance or retirement portfolio didn’t have much choice so far (a handful of companies like ForUsAll proposed some crypto retirement offerings, but overall the sector didn’t have an easy crypto solution).
This may change very soon, as the maximum period for the SEC to object Valkyrie and ProShares crypto ETFs is about to expire.
No wonder crypto markets are bullish: with over $20 Tr of assets in the American pension funds we can only imagine the possible impact that crypto ETFs can have on the demand for main cryptocurrencies such as Bitcoin. And where’s rising demand, there will be rising prices 😉
Numerous financial companies filed crypto ETF requests since 2020, but the SEC has been steadily rejecting them.
Valkyrie and ProShares changed their strategy and applied for the ETFs that will track not Bitcoin itself, but its futures, offering an indirect exposure.
This is not ideal, but if the SEC for some reason prefers this solution to the physically backed ETFs, it will be good news.
Canada, which approved crypto ETFs earlier this year, can witness to their popularity: Coinshares’ ETF launched in April gathered its first $1Bn in asset under management in less than a month.
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