CryptoDigest. 18.10

Bitcoin has slightly corrected after the surge above $62,000. However, most experts still believe that by December, the largest digital currency will be able to approach $100,000 or even exceed this psychological mark.

An important event will be the launch this week of the first US Bitcoin ETF futures. The relevant information was published by reputable business publications at the end of last week. However, so far neither the US regulator nor the companies issuing the product have confirmed or denied the media reports.

It is believed that if a new product does appear in the US, then institutional investors will pounce on the digital currency like hot cakes and push it to new heights.

Even asset manager Grayscale is waiting for drastic action from the SEC. If approved by the commission of a Bitcoin-ETF crypto fund, the institutional investment giant can convert its Bitcoin trust into an exchange-traded ETF.

Rubicon passed?

The issuer of the futures product pegged to the Bitcoin ETF is ProShares. It was her application that could be one of the first approved by the Securities and Exchange Commission (SEC).

The product may appear on the market today, it will be available to potential investors under the ticker BITO. This important event for the cryptosphere was reported by many reputable media outlets at the end of last week, including Bloomberg, Reuters and Business Insider.

However, ProShares and SEC officials declined to comment. The futures-based product is supposed to be listed on the New York Stock Exchange. This is not a direct exchange-based crypto fund, but an ETF-focused product.

Note that in Canada and Brazil in the first half of 2021, bitcoin ETFs appeared on local stock exchanges. Many observers then announced the inevitability of the legalization of the exchange crypto fund in the United States. However, the Securities and Exchange Commission has so far repeatedly postponed the timing of its decision on applications for its launch.

The head of the SEC, Gary Gensler, spoke in August not for bitcoin-ETF, but only for futures on this product. In his opinion, the American regulator can control the trading of futures, taking into account the legislation on securities.

The SEC is also considering applications for bitcoin futures products from Valkyrie, VanEck, Invesco and BlockFi.

Cold shower

During Asian trading on Monday, Bitcoin soared above $62,000. However, the market quickly overheated ahead of the launch of ETF futures. As a result, we saw a correction. In the second half of the European session, BTC sank in price to $60,944. The capitalization of the cryptocurrency is now $1.15 trillion.

The rest of the coins move in different directions. Ether (ETH) and Cardano (ADA) fell 2% to $3,734 and $2.12, while Binance Coin (BNB) and Dogecoin (DOGE), on the contrary, gained 5% to trade at $477 and $0.253, respectively. The capitalization of the crypto market is gradually approaching $2.5 trillion, the Bitcoin dominance index is now slightly below 47%.

Ahead of the launch of bitcoin-ETF futures, institutional investors are preparing to enter the cryptosphere.

Open interest in BTC futures on the Chicago Exchange is now at an all-time high of over $3.5 billion.

The IntoTheBlock report says that the amount of contracts for perpetual swaps on bitcoin has reached a six-month high, this figure is close to $18 billion, which has not been seen since April 14.

Whales show increased activity on spot platforms as well. According to the Santiment team, the number of addresses holding from 100 to 1000 BTC has grown to 13,987. In five weeks, the number of whale wallets increased by 1.9%, or 254 units, the researchers found.

Grayscale as a cryptotransformer

At the moment, asset manager Grayscale controls up to $52.6 billion of digital currency through its trusts. The giant’s Bitcoin and Ethereum trusts have accumulated a total of $38.685 billion and $11.926 billion, respectively.

If the US authorities allow the launch of Bitcoin-ETF exchange-traded crypto funds on the domestic market, then Grayscale can transform its BTC trust into just such a product. Official confirmation of such information has not yet been received. However, Grayscale Digital Currency Group CEO Barry Silbert hinted at just such a scenario on Twitter the day before.

At the same time, the head of the company himself is in favor of bitcoin-ETF, and not for futures for this product. The businessman also expressed his point of view through social networks.

nice bonus

Juan Cañada, the founder of the Brazilian cryptocurrency platform Foxbit, announced that his four-year-old daughter was able to make very good money on BTC.

In 2017, he gave her one bitcoin, bought for $915.8. Since then, the value of the virtual coin has skyrocketed by over 6,500%.

Cañada stressed that when he bought his daughters BTC, he first of all invested in an innovative economy. At that time, the price of the cryptocurrency was about 5,000 Brazilian reais. The head of the trading platform admitted that he had no idea about the stunning performance that Bitcoin would demonstrate in 4 years.

Sources: Twitter, CoinTelegraph, CoinMarketCap, IntoTheBlock, The Block, ByBt