SEC tweet ignites speculation of impending Bitcoin ETF approval


  • The US SEC has recently tweeted to ask investors to assess the risks and rewards of investing in a fund that is tied to Bitcoin futures contracts.
  • The post sparked speculation in the crypto community that the regulator is ready to approve a Bitcoin ETF.
  • A prominent analyst suggests that the odds of the SEC approving a Bitcoin ETF are now at 85%.

The United States Securities & Exchange Commission (SEC) has posted a tweet about weighing the risks and benefits of investing in a fund that holds Bitcoin futures. The post sparked speculation within the cryptocurrency community that the securities regulator may approve a Bitcoin exchange-traded fund (ETF).

Analyst suggests odds of Bitcoin ETF approval at 85%

The US SEC’s Office of Investor Education and Advocacy wrote in a tweet and informed investors that they should “weigh the potential risks and benefits” before investing in a fund that holds Bitcoin futures contracts.

The tweet refers to an investor bulletin that was published by the office in June, telling investors to examine the potential risks involved with investing in BTC futures through funds.

The crypto community started to speculate that the SEC will soon approve a Bitcoin futures ETF. In addition, the regulator is facing many deadlines this month for the Bitcoin ETF proposals various companies put forward earlier this year.

Eric Balchunas, a senior ETF analyst at Bloomberg, commented that the SEC tweet was a “good sign” and that the odds of the regulator approving a Bitcoin ETF is now at 85%. 

He added that Valkyrie recently updated their Bitcoin futures ETF prospectus, suggesting that the US is inching closer to a BTC ETF being approved as companies only update their prospectus when their ETFs are almost ready for launch.

Bitcoin price on track to target $60,000

Bitcoin price has been able to rally off of increasing positive sentiment, as it continues to form an ascending parallel channel on the 4-hour chart. BTC may need to test the strength of its foothold prior to extending gains.

Bitcoin price may find immediate support at the 20 four-hour Simple Moving Average (SMA) at $56,785, coinciding with the middle boundary of the prevailing chart pattern. Additional lines of defense may emerge at the 50 four-hour SMA at $55,773.

Further selling pressure may see BTC fall toward the lower boundary of the technical pattern at $54,580, corresponding to the 78.6% Fibonacci retracement level. Failure to hold above this level may spell trouble for the bulls, but a line of defense may appear at the support line given by the Momentum Reversal Indicator (MRI) at $54,099.

BTCUSDT

BTC/USDT 4-hour chart

Should the bulls continue to take control of the market, Bitcoin price will need to secure $56,785 as a foothold before moving higher, tagging the topside trend line of the parallel channel, targeting $60,000 next.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bulls on winning streak pushing for more

Bitcoin price jumped this week after a shift in sentiment on Thursday when global equities went back in the green and investors favored riskier assets like cryptocurrencies. 

More Bitcoin News

Binance support for Polkadot parachain auctions could send DOT to new all-time high

At the Sub0 Conference representatives of Parity Technologies, DOT founders Gavin Wood and Robert Habermeier, confirmed that Polkadot is now ready to implement parachains, auctions and crowd loans on its blockchain network. 

More Polkadot News

XRP price awaits for volume to skyrocket to $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple bulls take control.

More Ripple News

Shiba Inu whales buy the dip after SHIB loses $600 million in market cap

Shiba Inu concluded a massive rally, and SHIB price plunged on October 14. Proponents were awaiting a Dogecoin flippening, however, SHIB dropped to 14th rank by market capitalization soon after. 

More Shiba Inu News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP