BTC Floats Near Record High as Crypto Market Cheers ETF Approval

19 Oct 2021 · 3rd Party Analysis

Vector of a Target pointing at BTC logo, suggesting all eyes are on Bitcoin, over a Candlechart Background. Bitcoin Floats Near Record as Crypto Market Cheers ETF Approval


In Summary:

  • Bitcoin’s price trades just below $63,000 after a 5% gain on Monday
  • The SEC officially gave the green light to ProShares’ Bitcoin Strategy ETF

What are Traders and Investors Following Today?

Crypto backers finally received the long-anticipated news that the first US Bitcoin ETF has been approved. Eight years after the first filing for a Bitcoin exchange-traded fund, the Securities and Exchange Commission decided Monday to clear for trading ProShares’ Bitcoin Strategy ETF.

On that note, the Bitcoin futures ETF is set to land at the New York Stock Exchange today. That means millions of traders could now have access to the original cryptocurrency through the stock market. Moreover, thousands of institutional investors are now able to get exposure to bitcoin’s volatility and elevated price swings.

In other words, today’s milestone in crypto is expected to further pave the way toward broader adoption. The Bitcoin ETF packaged by ProShares, however, will not be offering actual bitcoin. Rather, traders will be buying futures contracts on the price of bitcoin. As to an exchange-traded fund that will hold bitcoin itself, the SEC has said it must first introduce regulations over the cryptocurrency market.

What’s Bitcoin Doing Today?

Bitcoin reached a new monthly high earlier today. Moreover, the price of the flagship token spiked to a session high of $62,950, a level last seen on April 16. That said, the leading digital currency was less than 3% from its all-time record high of $64,800 set on April 14.

The cryptocurrency market today is floating right at the $2.5tn valuation threshold. Alternative tokens have also helped fuel the capitalization of the crypto space. Ether, the second-biggest coin, has jumped about 3.5% so far on the day.

The Ethereum network’s native token almost finished in the red yesterday when it gained 6% but then erased most of it to close at $3,730. Presently, Ether is trading near $3,850 per coin.

So far, the stellar performance of bitcoin has propelled its price higher by 45% this month. Since its lows in late July, the leading token is up more than 110%.

Dive Deeper in the Financial World

The prospects for crypto are looking bright. As the fourth quarter progresses, the fast-emerging market is witnessing increased attention from traditional markets and financial institutions. Furthermore, regulations in the US are expected to be crypto-friendly. The good news is that SEC Chairman Gary Gensler is looking to embrace the digital asset market. In previous comments, he said the agency does not plan to ban bitcoin.

In stocks and currencies, Wall Street equities notched their fourth day of gains. Investors are shifting their sentiment to increased optimism amid the earnings season. Major companies are slated to report financial results for the quarter ended September. On that front, money managers have boosted equities in hopes the strong earnings reports will continue.

In the forex market, the US dollar has declined against major peers in the currency space. The EUR/USD advanced earlier today to a session high of 1.1660. The USD/CAD maintains its downward spiral as the pair is now almost at a level last seen on July 6. The GBP/USD keeps moving to the upside today, gravitating towards 1.3780.

What to Expect in the Markets?

Inflation data from the European Union, the UK, and Canada is scheduled for tomorrow. The reports will most likely increase the volatility in the currency market, as well as in the prices of gold and silver.

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