The Bitcoin price is inching closer to $60k, racing past $58k and convincingly shaking off bears of last week. However, according to Lex Moskovski, the retail demand for the world’s most valuable coin is there if the status of one of the leading Bitcoin Exchange-Traded Fund (ETF) and the first in Canada, Purpose Bitcoin ETF, guides.
Investor Confidence in Bitcoin
In a tweet on Mar 29, the CEO appeared confident, expecting buyers to build on today’s gains and push prices to new levels above $62k—Mar 2021 highs.
This time, the focus is on Bitcoin ETF as the primary trigger for the wave of demand, propelling prices to lofty targets towards $100k as some Bitcoin permabulls expect.
A Bitcoin ETF is a derivatives product that trails the performance of the underlying asset, BTC. It allows investors to get exposure to the coin through shares by an approved issuer. These shares are available for trading in traditional exchanges.
Will the SEC Approve a Bitcoin ETF?
In traditional circles, the product is one of the most widely used, allowing leverage and institutional exposure of the underlying asset.
While being a critical cog in the regulated space, the United States Securities and Exchange Commission (SEC), the main regulator, has been dragging its feet.
Despite over eight applications, the earliest being by the Winklevoss Twins in 2013, the commission has shot down all of them, citing the absence of robust monitoring tools, volatility, and widespread price manipulation.
However, in 2021, and accompanying the surge of Bitcoin prices to spot levels, more traditional heavyweights, including Fidelity and Goldman Sachs, are keen on offering a Bitcoin ETF.
Accordingly, the Bitcoin community is hopeful, convinced that the SEC would this time approve any of the over seven new applications and “open the floodgates.”
The U.S. Lags Canada and Brazil
Already, the SEC is lagging behind other countries, including Canada and Brazil. Canadian authorities have approved three Bitcoin ETFs.
Purpose Bitcoin ETF is trading at the Toronto Stock Exchange, managing over $1 billion of assets from investors—both retail and institutions. Amid the surging and understandable demand, there have been zero outflows.
Investors are confident of Bitcoin prospects. They are now piling on the digital asset, seeking exposure.
As BTCManager reports, Grayscale—known for their GBTC shares-plans to issue Bitcoin ETFs subject to SEC’s approval.