Bitcoin up 36% since China Ban as ETF approval nears

The price of Bitcoin is now 36% higher than when China announced its ban on cryptocurrency transactions last month.

The world’s largest digital asset was trading around US$62,000 on Friday, amid rumours the SEC will approve a Bitcoin ETF (Exchange Traded Fund) next week.

Reuters reports the Nasdaq has already approved the listing of the Valkyrie Bitcoin Strategy ETF, with an official letter to that effect circulating online.

ETF approval
Letter shows NASDAQ has approved the listing of the Valkyrie Bitcoin Strategy ETF.

The Securities and Exchange Commission (SEC) sparked rumours it will soon approve an ETF by posting a warning about the risks of Bitcoin futures contracts on Twitter on Friday.

Bloomberg is also reporting that the first U.S. Bitcoin fund could begin trading next week, in a move that would open a new path for investors to gain exposure to the emerging asset.

“Crypto ETFs are inevitable. A product like this will eventually come to fruition since there is a demand for it,” Chris Kline, chief operating officer and co-founder of Bitcoin IRA told Reuters.

“It seems clear that regulators will approve some version of a crypto ETF soon, most likely by Monday,” Kline said.

“As regulators become more familiar with the space, the SEC is starting to understand how these assets are stored, secured and reconciled so that it makes sense in traditional finance.”

Meanwhile, China is sticking by its ban on the cryptocurrency, with mining activity in the Asian nation grinding to a halt.

Data shows the United States is now the world’s largest consumer of Bitcoin energy, after Chinese miners were forced to shut down.

ETF approval
Data from Cambridge Centre for Alternative Finance

Asia Markets Partner