Cryptocurrencies Rise Over Approval of the First US Bitcoin ETF

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Principal Points:

• Bitcoin hits nearly $63,000 amid excitement over the SEC’s decision on a bitcoin ETF
• The entire crypto market’s worth jumped over $2.5tn early on Monday

Cryptos Rise Above $2.5tn in Total Value

The cryptocurrency market has now topped $2.5tn in value. The huge milestone arrives for the second time in the relatively short history of digital assets. The first time was when bitcoin reached its all-time high in mid-April. Back then, the biggest cryptocurrency jumped to $64,800.

Now, the price of bitcoin is closing in on $63,000 ahead of a major update related to the global expansion of cryptos. More precisely, a potential Bitcoin ETF approval by top US regulators.

In other words, the Securities and Exchange Commission will decide today whether to clear for trading ProShares’ Bitcoin exchange-traded fund. Currently, ProShares, a firm dealing with ETF products, is awaiting a review from the SEC on its Bitcoin ETF called Bitcoin Strategy ETF.

As the decision should arrive today, crypto traders and investors are confident policymakers will allow the fund to start trading. If approved, it would be the first-ever launch of an ETF with focus on bitcoin futures in the US.

What is an ETF Based on Bitcoin Futures?

An exchange-traded fund that deals in bitcoin futures would allow investors access to bitcoin futures trading. That would mean that any US brokerage firm could offer regulated exposure to the price of bitcoin. It’s important to note that a Bitcoin ETF would not hold actual bitcoin. Instead, it will enable traders to speculate on the price of bitcoin through derivative products called futures.

The step, however, is fueling heightened enthusiasm around the markets for several reasons. First, this would open the doors for institutions to trade some form of cryptocurrency products. And second, this would increase the credibility of the nascent digital asset market.

What Else is Happening in the Financial Markets?

This week will be closely monitored by traders and investors as the earnings season gathers momentum. Indeed, big corporations are slated to report their third-quarter financial results. Some of them include Netflix, which reports on Tuesday. Next, Tesla and IBM are lined up on Wednesday.

In the meantime, oil prices continue to climb higher. Crude oil, the international standard, surged above $86 a barrel in the early hours today. Additionally, West Texas Intermediate, the US benchmark, topped $84 a barrel as the global energy crunch is gaining traction.

In the broader financial markets, US stocks today are looking to open slightly lower. Moreover, futures contracts tied to the major US indexes hovered fairly flat ahead of the bell in New York. European shares, in the meantime, opened for trading in the red. The pan-European Stoxx 600 was down about half a percent.

Nevertheless, currencies today are looking attractive to traders. The USD/JPY pair is floating near a three-year high as bulls and bears try to decide where to take it next. The USD/CAD, on the other hand, is pressured near a four-month low.

Economic Data Coming Up Today (EST times)

The Australian central bank, the Reserve Bank of Australia, is scheduled to release its meeting minutes today at 09:30 pm. The news could drive the Australian dollar to higher-than-usual volatility.

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