The price of Bitcoin and other cryptocurrencies is growing rapidly. Many experts believe that the reason for this may be the expectation that the ETF for the main cryptocurrency in the U.S. will soon be approved. To recall, an exchange-traded fund or ETF is an investment product that allows investors to buy shares whose value dynamics depend on a particular underlying asset or set of assets. The very fact that Bitcoin ETFs exist could significantly enhance the reputation of the cryptocurrency and the industry as a whole, because in this case, members of regular stock exchanges will also be able to connect with digital assets. Although the SEC has rejected applications for a Bitcoin-ETF for several years now, that may be about to change. We tell you more about it.

We checked the latest data: today Bitcoin is trading above the $54,000 line. The most interesting thing is that it was BTC that showed the best growth result among cryptocurrencies in the top ten by market capitalization. This usually indicates the beginning of a new bullrun stage. Still, Bitcoin grows first, then large cryptocurrencies, and then – projects with small capitalization.

Over the past seven days, BTC has risen in value by 23.5 percent.

Why Bitcoin is rising.

So far, at least 13 major companies have applied to the SEC for a cryptocurrency exchange-traded fund and are still waiting for a formal response from the financial regulator. Many believe that at least one of the applications will be approved by October 18. True, with one catch.

As Decrypt journalists point out, Commission officials may approve an ETF that is based on the price of Bitcoin futures rather than the cryptocurrency itself in the regular market, that is, the so-called spot ETF. This means that the price of the asset may not be the same as what happens in the niche, as users of the futures market kind of bet on what happens to the cryptocurrency rate in the future.

Here’s what Bloomberg exchange-traded fund expert Eric Balchunas said about that.

The futures ETF filed under the Investment Company Act of ’40, which Generation Z likes so much, is being actively considered and will probably be approved on schedule. We think there is a 75 percent chance of its approval as early as October.

In that case, members of stock exchanges will be able to purchase securities for the cryptocurrency. That is, it will not be a coin itself, but only a contract. However, there are two pluses here. First, traders from another sphere would hardly be able to store coins properly, so this approach suits them better. Second, the exchange will have to keep the equivalent of the cryptocurrency in its inventory, so the popularization of digital assets will surely affect their rate because of the need for mass purchases of coins.

Why is bitcoin destined for a bright future?

A futures ETF will allow investors to buy units, which are futures contracts rather than the digital asset itself. Such an investment product has previously been criticized in the cryptocurrency community, as many believe it is not what investors really want. A futures ETF would be less liquid and more expensive for its issuers compared to a spot exchange-traded fund. As a first step for the U.S., however, it is not the worst move anyway.

Former banker and crypto trader Alex Krueger said on his Twitter that such an investment product would actually be pretty bad. Here’s his rejoinder.

If the ETF is accepted, it will be futures. This is not a rumor – some strongly believe in its adoption. Ironically, it would be a terrible product: the SEC is still concerned about market manipulation and the lack of agreements with exchanges to make them transparent.

Amid speculation of a positive SEC response to the ETF, the value of Bitcoin has already touched the $55,000 line. That said, the $50,000 level could be a good support boundary for the bull run to continue, according to Bloomberg analyst Mike McGlone. Here is his quote in this regard, in which the expert shares his vision of what is happening. The replica is cited by Cointelegraph.

A breakout of the $50,000 line, which has been resistance since May, made it support for the fourth quarter of this year. The $40,000 level is similar to the cryptocurrency’s launch pad around $10,000 at the end of 2020, just now it’s almost four times higher. The average price for 2021 is $44,500, with demand for Bitcoin growing and supply shrinking.

There is not much left before the key line of $100,000 – Bitcoin needs to rise in price less than twice to reach it. In the past, the cryptocurrency has repeatedly demonstrated impressive growth in just a few months, so the end of this year may not be an exception.

We think that the current situation in the coin niche really looks positive. Apparently, the market is gradually preparing for the transition to the final stage of the bullpen. And if it is the same as at the end of 2017, we can assume that the end of 2021 will be just as bright. In any case, we recommend that you remember to manage risk and traditionally invest only what you can afford to lose.