Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Bitcoin surged above $60,000 on Friday as traders speculated that U.S regulators would approve the first bitcoin futures exchange traded fund.

According to Coin Metrics the world’s largest cryptocurrency rose more than 8% to $62,307 – its highest level since April. 17.

According to a source familiar with the matter, the Securities and Exchange Commission will allow trading to begin next week for the first U.S. Bitcoin futures exchange traded funds. This is a significant victory for a crypto industry that has been seeking permissions from Wall Street’s top regulator.

The person stated that the SEC is unlikely to block ETFs suggested by ProShares and Invesco. These ETFs are based upon futures contracts and were submitted under mutual fund guidelines, which SEC Chairman Gary Gensler believes offer investors substantial protection.

ProShares Bitcoin Strategy ETF is scheduled to make its debut at the New York Stock Exchange Tuesday. Experts believe that the SEC will not object to the product.

Last trading of the CME October futures contract was $60,570. This is an increase of about 4%.

The approval of an ETF that allows mainstream investors to access bitcoin would be a significant milestone for the crypto industry. It has been long pushing for greater acceptance for digital assets on Wall Street.

“The ETF news is being price in with the market anticipating an approval on Monday. CNBC’s Vijay Ayyar, Asia Pacific head at Luno cryptocurrency exchange, said that this is pushing the price up.

Ayyar warned that bitcoin could be sent to the ground if ProShares’ product is rejected.

Mikkel Morch (executive director of digital asset hedge fund ARK36) said that bitcoin could rise above its April high of near-$65,000 but warned that the cryptocurrency might experience a’short term pullback’.

Morch stated that investors should be aware of the possibility that the hope for a sustained rally over the $60K barrier, and further through the previous all time high, could turn into a ‘buy the story, sell the news’ scenario.

ETF news Friday did not give a boost to all cryptocurrencies. Ether, which is the second-largest cryptocurrency, rose 0.5% on spot exchanges to $3,804 However, both XRP (and ada) were down around 2%.

This year has been a wild year for Bitcoin and other cryptocurrency. In April, the number one digital coin reached an all-time high of $64,000. However, it fell sharply after a crackdown in China on the cryptocurrency market. Since then, it has experienced a resurgence and more than doubled its price this year.

As investors have increased their interest in crypto, regulators have taken a more aggressive stance on the matter. However, the industry has been fighting back with coinbase on Thursday calling for the U.S. government to create a new regulator in order to oversee digital assets.

This week, the Bank of England Deputy Governor Jon Cunliffe warned that cryptocurrencies could lead to a global financial crisis of the same magnitude as 2008’s crash.

Cunliffe stated Wednesday that when something is happening in the financial system, it’s important for financial stability authorities to take notice.