Optimism over an SEC-Approved Bitcoin-Based ETF Soars, as Competition Increases

Optimism over an SEC-Approved Bitcoin-Based ETF Soars, as Competition Increases

The cryptocurrency community is optimistic that this year is the year US regulators finally approve a Bitcoin (BTC)-based exchange-traded fund (ETF), which would be hosted on a major stock exchange.

In December 2020, VanEck reapplied for a BTC-based ETF with the US SEC. Just this week, VanEck has filed for yet another ETF dubbed the Digital Asset ETF, which is geared towards holding equity in companies that realize revenue from cryptocurrency-related services.

Meanwhile, a Canadian-based investment fund manager, Arxnovum Investments, has also filed for a Bitcoin-based ETF with Canada’s Ontario Securities Commission. Another company has hopped on the BTC ETF race, as a Texas-based firm, Valkyrie Digital Assets, filed for a Bitcoin fund on Friday.

Valkyrie highlighted in its filing that the trust might list the shares on the NYSE Arca. The investment company asserts that the ETF will provide more accessible BTC investing methods for investors.

Valkyrie stated in its filing that “the trust’s purpose is to hold bitcoins, which are a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network.”

However, the firm warned that investing in the trust comes with a significant risk, noting that the fund might not be suitable for risk-averse shareholders/investors.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 24

Bitcoin has failed to regain its bullish status, following a recent bounce from the $29,400 support last week. The cryptocurrency spent most of the weekend consolidating between the $34k resistance and the $31,500 price point and has seen a bearish descent below that range over the past few hours.

The cryptocurrency needs to facilitate a fresh leg up soon or risk revisiting the $30k area and lower.

Meanwhile, our key resistance levels are at $32,000, $33,000, and $34,100. While our key support levels are at $31,000, $30,000 and $29,400.

Total Market Capitalization: $940 billion

Bitcoin Market Capitalization: $587 billion

Bitcoin Dominance: 62.4%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results. 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.