Bitcoin moved near six-month highs on Monday in anticipation of the listing of the first futures-based bitcoin exchange-traded fund (ETF) in the United States, which investors are looking forward to higher trading volumes.
Other fund managers will likely launch Crypto ETFs in the coming days and weeks, which could lead to broader investment in the asset class.
The world’s largest cryptocurrency was last trading at $62,288, near Friday’s six-month high of $62,944 and not far from its all-time high of $64,895 in April.
If the U.S. Securities and Exchange Commission (SEC) does not object, the ProShares Bitcoin Strategy ETF completes the 75-day period since the fund manager filed plans, and could begin trading Tuesday.
Fund managers that have applied to launch bitcoin ETFs in the United States include VanEck Bitcoin Trust, Valkyrie , ProShares, Invesco, and Galaxy Digital Funds.
After months of back-and-forth between SEC and potential issuers of bitcoin futures ETFs, the regulator appears poised to greenlight a handful of applications that would open the door to broader access to cryptocurrencies for retail and institutional investors alike.
Under the rules used by ETF issuers, SEC does not have to explicitly approve the ETFs. They can be launched after a 75-day period if the U.S. regulator does not object.
Rising global inflation concerns have also hightened the appetite for cryptos, which has been limited in contrast to the large amounts of currency issued by central banks in recent years as monetary authorities print money to stimulate their economies.
“Unlike previous recoveries, the market does not seem very exuberant. A growing number of investors are starting to believe that inflation is not temporary, and it is possible that Bitcoin will be chosen as a hedge against inflation,” said Makoto Sakumra, a researcher at NLI Research Institute.