The world’s leading digital currency rallied towards $60,000 key psychological level during early Friday’s trading session, spurred by the news that the US Securities and Exchange Commission (SEC) is ready to approve the launch of the first U.S Bitcoin futures Exchange Traded Funds (ETFs) as soon as early next week.
BTC/USD pair, Daily chart
Bitcoin posted a remarkable recovery rally from September’s lows of $40,000 towards the $60,000 key level, gaining nearly 50% amid strong buys from long-term crypto investors, the liquidation of more than $300 million worth of short positions in the market, and from speculators that follows the market momentum.
The pioneer cryptocurrency has proven doubters wrong after it managed to halt the downward trend at the $30,000 level in mid-July following China’s crypto mining crunch. Most of the crypto miners have moved to the U.S. and especially to the mining-friendly Texas state, while some others work from Kazakhstan and Iceland amid low-cost mining.
An additional boost to the crypto rally gave the U.S. Federal Reserve Chair Jerome Powell last month after he said that the most powerful central bank in the world has no intention of banning cryptocurrencies.
Cryptocurrency investors cheered the significant progress around the first Bitcoin ETF in the United States, as the launch has been well-expected during the last quarter of the year, following the launch of crypto ETFs in Europe and Canada months ago.
SEC’s approval could speed up the mainstream adoption and will allow big Wall Street investment banks and other institutional investors to offer exposure in the crypto market to their clients through regulated Bitcoin ETF’s.
On top of that, many institutional money managers, including the Cathy Wood’s Ark Fund, VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds have applied to launch bitcoin ETFs in the United States.
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