Australian regulators to approve Bitcoin ETFs, pushing BTC price higher
- The Australian Securities and Investments Commission has approved Bitcoin spot exchange-traded funds.
- The corporate regulator has provided new guidelines and drafted regulatory requirements for funds planning to offer Bitcoin ETFs.
- Investors in the US are awaiting the approval of a Bitcoin spot ETF.
- Analysts predict a second leg up in the BTC price rally, set a target at $70,000.
While investors and traders await the launch of a Bitcoin spot ETF in the US, ASIC has approved the fund. On October 29, the regulator released a set of requirements for funds looking to offer a Bitcoin spot ETF.
Bitcoin ETF approval likely to trigger another price rally
Australian Securities and Investments Commission (ASIC) has responded to the public consultation on crypto ETFs with fresh industry guidance.
ASIC released a set of regulatory requirements for exchange-traded funds (ETFs) and structured products after three months of deliberation. ETPs based on Bitcoin and Ethereum have received the green light, while investors await approval for more crypto assets in the future.
On October 29, ASIC announced,
As at October 2021, Bitcoin and Ether appear likely to satisfy all five factors identified above to determine appropriate underlying assets for an ETP. We expect the range of non-financial product crypto-assets that can satisfy these factors will expand over time.
The world’s first approved Bitcoin ETF was Purpose Group’s fund in Canada. ProShares Bitcoin ETF was approved by US SEC, offering BTC a ten times larger market than Canada. With the latest Bitcoin spot ETF launch, the cryptocurrency product is now mainstream and ready for investors.
Regulated BTC investment opportunity has opened up more avenues for institutional investors, increasing capital inflow to Bitcoin.
Analysts expect the BTC price to recover from the recent drop. @TheBirbNest, a cryptocurrency analyst and YouTuber, has predicted BTC price rally to $70,000 based on his technical analysis.
FXStreet analysts have evaluated the BTC price trend and expect a drop to $53,000 as Bitcoin presents a buying opportunity before it resumes an upward climb.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
