Bitcoin tops $60,000. Why is it reaching a record high?

The price of Bitcoin hit $60,000 for the first time in six months after the launch of a an exchange-traded fund (ETF) in the US.

Bitcoin hit $60,000 (€51,700) for the first time in six months on Friday, nearing its record high, as traders grew confident that US regulators would approve the launch of an exchange-traded fund (ETF) based on its futures contracts.

Cryptocurrency investors have been waiting for approval of the first US ETF for Bitcoin, whose recent rally has been fuelled in part by anticipation of such a move, which is seen as speeding up the mainstream adoption of digital assets.

Bitcoin, the world's biggest cryptocurrency, rose 4.5 per cent to its highest level since April 17 and was last at $59,030 (€50,872.35). It has risen by more than half in value since September 20 and is now close to its all-time high of $64,895 (€55,926.84).

The US Securities and Exchange Commission (SEC) is set to allow the first US Bitcoin futures ETF to begin trading next week, Bloomberg News reported on Thursday.

"It is widely expected that Q4 will see significant progress around a bitcoin ETF in the US," Ben Caselin, head of research and strategy at Asia-based cryptocurrency exchange AAX, said.

Friday's moves were spurred, he said, by a tweet from the SEC's investor education office that stated: "Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits".

'Build-up' of Bitcoin ETFs

Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds have applied to launch Bitcoin ETFs in the United States.

Crypto ETFs have been launched this year in Canada and Europe.

"We have seen more institutional build-up, especially in the past few weeks, than we have at any time since the (Bitcoin price) crash back in April," said Noelle Acheson, head of market insights at Genesis Global Trading.

SEC Chair Gary Gensler has previously said the crypto market involves many tokens which may be unregistered securities and leaves prices open to manipulation and millions of investors vulnerable to risks.

The Bloomberg report, citing people familiar with the matter, said that proposals by ProShares and Invesco are based on futures contracts and were filed under mutual fund rules that Gensler has said provide "significant investor protections".

The SEC did not immediately respond to a request for comment on the Bloomberg report.

Add Comment

Panamanian Port Operators Emphasise Automation and Regional Integration at the Maritime Intelligence Conference in Colombia

Leading executives from the Panamanian maritime sector are negotiating new terminal partnerships and discussing port automation technologies at the TOC Americas logistics confer...

Panama Launches Upgraded Investment Migration Programmes to Attract International Capital and Remote Technology Workers

The Panamanian government has revamped its digital nomad and residency-by-investment visa frameworks, aggressively targeting affluent North American expatriates and internationa...

Panama and Costa Rica Sustain Coordinated Humanitarian Bus Corridors to Secure the Orderly Transit of Northern Migrants

Immigration ministries in Panama and Costa Rica are maintaining highly structured overland transit protocols, using chartered bus convoys to move remaining asylum seekers safely...

Central American Logistics Corridors Face Mounting Pressure to Resolve Cross-Border Freight Bottlenecks Hampering Panamanian Trade

Regional logistics operators are demanding modernised digital customs systems and unified border controls as heavy administrative delays along the Pacific Corridor continue to a...

Panama Deepens Strategic Nearshoring Appeal Through Expanded Mercosur Trade Integration and Central American Diplomatic Alliances

Regional economists report that the ongoing integration of Panama into the Mercosur trade bloc is intensifying pressure on neighbouring Central American nations to modernise cus...

United States Deploys Humanitarian Aid to Panama Following Major Earthquake off the Azuero Peninsula

International disaster response teams are delivering over twenty-eight thousand pounds of emergency relief supplies to coastal communities after a magnitude seven-point-seven ea...

Panamanian Banking Regulators Tighten Financial Technology Compliance Standards to Protect United States Dollar Correspondent Access

The Superintendency of Banks of Panama is intensifying anti-money laundering scrutiny on emerging financial technology platforms, enforcing stricter compliance frameworks to saf...

Tocumen International Airport Exceeds Fourteen Million Passengers as Regional Aviation Connectivity Rebounds

Aviation authorities confirm that Tocumen International Airport handled more than fourteen million transit and destination passengers over a nine-month period, reflecting strong...

Maersk Restructures Gulf Ocean Express Shipping Services to Enhance Cargo Connectivity Through Panamanian Ports

Global shipping company Maersk has updated its regional maritime networks, integrating new direct calls at the ports of Balboa and Manzanillo to streamline container movements b...

Panamanian Service Exports Surpass Eleven Billion United States Dollars Driven by Double-Digit Growth in Transportation and Logistics

The Panamanian Ministry of Commerce and Industries announced that service exports expanded by nearly thirteen percent during the first half of the year, reflecting robust global...

Tocumen International Airport and SATS Sign Strategic Agreement to Expand Air Cargo Connectivity Between Asia and the Americas

Regional aviation hub Tocumen International Airport has formalised a memorandum of understanding with global ground handler SATS to develop new international freight flows, incr...

Panama Canal Authority Allocates One Billion United States Dollars to Accelerate Maritime Decarbonisation and Digital Transformation

Canal administrators have detailed a massive investment strategy to upgrade maritime scheduling algorithms and establish green shipping corridors, offering financial incentives ...

PanamaTimes