SEC (The U.S. Securities and Exchange Commission) has tweeted about investing in funds that hold bitcoin futures contracts.
In the early hours of Friday morning, the price of Bitcoin (BTC) surged, propelled by reports that the launch of an exchange-traded fund (ETF) is near. It was hinted at by the official Twitter account of the SEC’s investor education division, which tweeted about the dangers of trading Bitcoin futures contracts, implying that an announcement was coming.
Bitcoin surged nearly $3,000 in less than an hour on Friday morning, reaching $59,924 according to CoinMarketCap’s price index. It is now less than $5,000 away from its all-time high that it experienced back in April.
The Securities and Exchange Commission (SEC) is expected to announce the long awaited bitcoin futures ETF as early as next week, according to a report in Bloomberg that cited sources close to the matter.
Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie and Galaxy Digital Funds have applied to launch bitcoin ETFs in the United States. Crypto ETFs have been launched this year in Canada and Europe. Noelle Acheson, head of market insights at Genesis Global Trading, said “We have seen more institutional build up, especially in the past few weeks, than we have at any time since the (bitcoin price) crash back in April.”
The crypto community is hopeful that the SEC will approve bitcoin futures ETFs since SEC Chairman Gary Gensler repeatedly indicated that he is open to this type of investment. He also said that he looked forward to the staff’s review of bitcoin futures ETF filings.
Cryptocurrency investors have been waiting for approval of the first U.S. ETF for bitcoin, whose recent rally has been fuelled in part by anticipation of such a move, which is seen as speeding up the mainstream adoption of digital assets.