Bitcoin soars above $62,000, US futures ETF debut expected today

The price of Bitcoin on Monday soared above the $62,000-mark ahead of the expected debut of the first US Bitcoin futures exchange traded fund (ETF), according to a report by news agency Bloomberg. Previously, Bitcoin crossed the $60,000-mark on October 15 for the first time since April, when the price was at $64,870.

On the other hand, the price of Ether, which is the second-largest cryptocurrency, also rose to $3,885, Livemint reported on Monday adding that the price of Cardano and Dogecoin saw a marginal increase. The price of other digital tokens Solana, Shiba Inu, also increased in the past 24 hours.

Since 2013, the US Securities and Exchange Commission (SEC) has rejected attempts to create a Bitcoin ETF. An ETF is a financial instrument that might comprise different assets and can be traded on an exchange just like other securities.

However, last week, the SEC fuelled speculation of the approval after it shared the following advice on Twitter, "Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits."

Edward Moya, a senior market analyst at OANDA, told news agecny AFP on October 15 that the SEC Bitcoin ETF approval is a watershed moment for the crypto industry as it could be the key driver for getting the next wave of crypto investors.

Citing people familiar with the development, Bloomberg reported that unlike the past Bitcoin ETF application, which was rejected by the SEC earlier, the proposals made by financial firms ProShares and Invesco were based on futures contracts. These proposals were filed under mutual fund rules which SEC Chairman Gary Gensler said to provide significant investor protections.

(With agency inputs)