Bitcoin was trading at about $50,650, up 5.14% for the week, after it rallied more than 10% last week. Expectations that the U.S. could soon approve a futures-based bitcoin exchange-traded fund are among the main factors powering the cryptocurrency higher.
ETF Store President Nate Geraci tweeted Monday that the first U.S.-listed futures ETF could be approved by the Securities and Exchange Commission (SEC) in two weeks. According to Eric Balchunas, Bloomberg Intelligence senior ETF analyst, there is a 75% chance of a futures-based ETF approval this month, most likely the ProShares Bitcoin Strategy ETF on Oct. 18. The SEC kicked the can down the road on three physically backed bitcoin ETFs earlier this month.
“Rumors of a BTC ETF decision later in the month is spurring further demand,” Matthew Dibb, co-founder and chief operating officer of Stack Funds, said. “Bloomberg is betting on a 75% chance of an ETF this month; however, it is likely to be futures-based.”
“This rally coincides with anticipation of the Proshares ETF approval on Oct. 18,” Dibb said.
Analysts at Arcane Research said a futures-based ETF, if approved, could lead to further buying pressure on the front-month CME futures contract and a higher premium.