Bitcoin ETF launching, whole crypto industry surges
Bitcoin reached a six-month high of $62,858 on Friday and was trading at more than $62,000 on Sunday night after dropping below $60,000 over the weekend, Investors.com reports. Late Friday, ProShares indicated that its Bitcoin futures ETF was likely to start trading this Tuesday.
While the Securities and Exchange Commission hasn’t approved the fund officially, they are not required to do so formally. It can start trading unless they object.
Bitcoin closer to ordinary people than ever
There could be several Bitcoin futures ETFs as early as this year, bringing the biggest cryptocurrency by market cap closer to ordinary investors than ever. Reportedly, Grayscale is about to file an application for spot price Bitcoin ETF.
SEC Chairman Gary Gensler has gone on record saying he won’t support a China-like ban on Bitcoin and other cryptocurrencies.
Whole crypto market is flourishing
Ethereum and other cryptocurrencies have rebounded as well. Marathon Digital Holdings (MARA), Grayscale Bitcoin Trust (GBTC), Coinbase, and other companies holding Bitcoin-related stocks have seen their share prices increase.
Tesla also has Bitcoin holdings. MARA was a big winner, seeing gains of 24% last week after gains of 19% in the previous one. Grayscale’s stock increased by 12% last week, and Coinbase’s – by 13%. On Friday, Coinbase broke a trend line.
Grayscale CEO talks to CNBC about first Bitcoin ETF
Grayscale CEO Michael Sonnenshein talked about the prospect of the first Bitcoin ETF in U.S. markets and what that means for other digital assets on CNBC’s ‘Squawk Box’. He believes this is an important week for digital assets because investors have been waiting for the first Bitcoin ETF for some time.
When asked how these funds, which bet on the future price, might affect the possibility that the government will regulate the underlying commodity or currency, Sonnenshein responded:
If the SEC has cleared the way for a Bitcoin futures ETC…we certainly believe the future and spot prices are interrelated …it does clear the way for the SEC to approve a Bitcoin-backed ETF and give further validation to the industry.
Sonnenshein added that there was great excitement over Bitcoin ‘anything’ and it was important for investors to access it as futures as well as based on spot prices. He said:
The success of this product proves that a physically backed product is the way that investors want to access this. Ultimately, having both those options in the market is a good thing.
Asked about resulting pressure on Grayscale fees, Sonnenshein assured:
We stand ready to reduce our fees when we come into the market with a Bitcoin ETF. There’s certainly going to be competitive pressure as more products come…but it’s too early to say what this landscape is going to look like.