Since the first rapid rise of Bitcoin in 2017, asset management companies and investment companies have been seeking opportunities to seize the growing space and try to bring Bitcoin to Wall Street. Of course, most, if not all, of these efforts are in vain – this is due to weakening demand during the economic downturn, opposition from government entities, or the general uncertainty surrounding the future of cryptocurrencies as an asset class. But now, as Bitcoin gains recognition from the public, institutions and even countries such as El Salvador, it seems right that cryptocurrency will finally consolidate its legitimacy.

Bitcoin ETF finally received approval from the U.S. Securities and Exchange Commission

Earlier today, the US Securities and Exchange Commission (SEC) finally announced that it had approved the first Bitcoin futures ETF in the United States. This is after months of deliberation and delays, the committee postponed its ruling on at least a dozen or more additional Bitcoin ETF applications. Proshares is an asset management company that submitted a Bitcoin strategy ETF earlier this summer, and it will be launched as early as next week.In its Revised prospectus Proshares updated on October 15th, stating that its ETF is expected to be launched on Monday, October 18.

There is no doubt that this is a historic moment in the field of cryptocurrency. As a regulated alternative to directly holding underlying digital assets, accessible Bitcoin ETFs will mean inflows of funds from retail and institutional investors.

How ProShares’ Bitcoin ETF works and Grayscale GBTC, The exchange-traded fund will track Bitcoin futures instead of directly tracking the price of Bitcoin. SEC Chairman Gary Gensler said that due to strict securities laws, future-based products may provide stronger investor protection.

As a futures-based product, there may be a potential premium or discount relative to the net asset value (NAV). However, the management fee of Proshares’ ETF is 0.95%, which is much lower than GBTC’s 2%. This, coupled with the strict redemption period of GBTC and the deviation from the net asset value, may cause a large number of funds to rotate from GBTC to ProShares ETF.

Breaking Bitcoin’s price movement

The above news pushed the cryptocurrency market higher, with Bitcoin approaching its all-time high of $63,000. Earlier today, the price of BTC reached a peak of $62,600. As of press time, the price of Bitcoin is $61,300-an increase of 6.36% in the past 24 hours alone.

Following the news that Bitcoin received ETF approval for the first time in the United States, investors rejoiced as Bitcoin (BTC/USD) rose to approach its ATH price. source: Tradingview.com

according to CoinMarketCap, The major cryptocurrency has recovered its $1 trillion market value and easily settled on $1.15T. Ethereum and other major altcoins reacted positively to this news, approaching their respective historical highs.

Featured image from UnSplash

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