The recent price rally of Bitcoin (BTC) and altcoins has generated contrasting opinions, with market analyst Peter Schiff expressing pessimism about its sustainability. According to Schiff, the fact that the largest cryptocurrency has joined the rally might be a sign that the uptrend is reaching its peak. “Rallies end when the lowest quality stuff finally participates,” he asserts, suggesting there’s “no lower quality than crypto.”
While Schiff’s bold but bearish predictions about BTC might stir reactions within the crypto community, it appears that the industry is disregarding the skepticism and venturing into new territories. The United States Securities and Exchange Commission (SEC) has granted approval for the 2x Bitcoin Strategy Exchange Traded Fund (ETF) – also known as BITX – paving the way for the listing of the Volatility Shares ETF, set to launch on June 27th, 2023. This marks a milestone for the ETF, becoming the first-ever leveraged crypto ETF to receive SEC approval.
Stuart Barton, the Chief Investment Officer, maintains that the SEC has not rejected the ETF application thus far, allowing the firm to proceed with its Bitcoin ETF launch. Per the ETF filing, the Volatility Shares ETF will connect to the CME Bitcoin Futures Daily Roll Index, offering customers exposure to Bitcoin at just 50% of the coin’s price. This development, along with BlackRock’s application for a spot BTC ETF, has generated positive sentiment within the crypto industry.
BTC’s price has now soared to $31,000 – the highest since the beginning of the year – likely fueled by recent ETF applications from industry heavyweights such as WisdomTree, Valkyrie, Fidelity, Invesco, and Bitwise. These investment asset management companies now await the SEC’s decision.
Notably, WisdomTree and Valkyrie had previously applied for a spot BTC ETF with the U.S regulator but were unsuccessful on separate occasions. Despite Schiff’s pessimism, the increasing institutional interest in the crypto ecosystem has undeniably triggered a rally in cryptocurrency prices, particularly Bitcoin.
The future of the crypto market remains uncertain as contrasting opinions continue to emerge. However, recent milestones and institutional interest demonstrate a growing acknowledgment, paving the way for further developments. Prospective investors should conduct thorough market research as the author assumes no responsibility for personal financial losses that may result.
Source: Coingape
