Bitcoin tops $60,000 on US fund approval hopes

Bitcoin breached the $60,000 mark for the first time since April on growing optimism that American regulators will greenlight the first US futures exchange-traded fund for the cryptocurrency.

The digital currency was up more than 40 percent from a month ago, reaching $62,253 at 2050 GMT, according to Bloomberg News data, which reported that the US Securities and Exchange Commission could allow the ETF to trade next week.

The SEC has rejected attempts to create a Bitcoin ETF since 2013.

"An SEC Bitcoin ETF approval is a watershed moment for the crypto industry as this could be the key driver for getting the next wave of crypto investors," said Edward Moya, senior market analyst at OANDA.

An ETF is a financial instrument that can include different assets and be traded on an exchange like other securities. A futures ETF means the product will be bought or sold at set price at a later date.

The SEC fuelled speculation of the imminent approval after writing the following advice on one of its accounts on Twitter: "Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits."

The ETF would add to an eventful year for the world's leading cryptocurrency, which hit a record high at $64,870 in April and became a legal tender in El Salvador, the first country to adopt it officially.

China, meanwhile, has cracked down on trading and mining cryptocurrencies, which are created through solving complex equations— an endeavor that consumes enormous amounts of energy.

SEC U-turn 

Bloomberg, which cited unidentified people familiar with the matter, reported that unlike past Bitcoin ETF applications that the SEC rejected, the proposals made by financial firms ProShares and Invesco are based on futures contracts.

The proposals were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide "significant investor protections," the news agency reported.

"This is a key development for the crypto space as it would allow many investors who were on the fence to enter the market in more traditional ways," said Walid Koudmani, analyst at XTB online trading.

An ETF would reassure investors "about previously associated risks such as lack of regulations and the possibility of having their wallet hacked," Koudmani said.

There are ETFs that include Bitcoin in other countries but getting one in the United States would take the cryptocurrency to another level.

"In America's case, it's the largest, most important market. To date, they (traditional investors) haven't had a simple vehicle in which to invest in Bitcoin," Charlie Erith, CEO of ByteTree Asset Management, which specializes in cryptocurrencies, told AFP.

Erith cautioned that "the impact on the market might be overblown. You might see a short selloff but it won't be meaningful."

But, he added, "long term, it's an important development. It signals that authorities are getting more comfortable with people owning cryptoassets."

Agence France-Presse

Uncensored on Twitter, Elon Musk draws ire of US regulators

NEW YORK - Tesla Inc Chief Executive Elon Musk is a prolific user of Twitter, and a federal judge on Thursday urged him to settle contempt allegations brought by the US Securities and Exchange Commission over one of his tweets.

The SEC accused Musk of violating his Oct. 2018 fraud settlement with the regulator by posting an Feb. 19 update about Tesla's production outlook without first getting required approval from lawyers for the electric car maker.

Musk countered that the tweet contained nothing new and did not need advance approval.

US District Judge Alison Nathan in Manhattan gave Musk and the SEC two weeks to work out their differences before she rules.

The following is a sampling of some of Musk's more notable posts on Twitter, where he has more than 25.6 million followers.

"Tesla made 0 cars in 2011, but will make around 500k in 2019." -- Feb. 19, 2019. The tweet that prompted the SEC contempt motion. Musk has said the tweet merely restated outlook he provided on a Jan. 30, 2019 conference call, when he said production "may be on the order of 350,000 to 500,000 Model 3s, something like that this year."

"Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!" -- Oct. 4, 2018. Musk was attacking both the SEC and short-sellers by renaming the regulator just one week after being sued over the "funding secured" tweet. Twelve days after this tweet, he and Tesla reached their settlement with the SEC.

"Am considering taking Tesla private at $420. Funding secured." -- Aug. 7, 2018. The tweet that prompted the SEC lawsuit. Musk was not close to taking Tesla private, and had not lined up financing. Tesla's share price traded as much as 13.3 percent higher following the tweet, which occurred during market hours. Musk tweeted on Aug. 24, 2018 that Tesla would remain public.

"They have about three weeks before their short position explodes" -- June 17, 2018. Musk frequently uses Twitter to attack short-sellers betting that Tesla's share price will go down. He was responding to a tweet suggesting that short-sellers were "freaking out" about suspected problems on Tesla's production line.

"Despite intense efforts to raise money, including a last-ditch mass sale of Easter Eggs, we are sad to report that Tesla has gone completely and totally bankrupt. So bankrupt, you can't believe it." -- April 1, 2018. Some investors appeared to believe it. A day after the April Fool's Day prank, Tesla's share price fell 5.1 percent.

"When the zombie apocalypse happens, you’ll be glad you bought a flamethrower. Works against hordes of the undead or your money back!" -- Jan. 27, 2018. Musk's Boring Co sold flamethrowers and hats to raise funds to build underground tunnels for its hyperloop transportation project.

"I've talked to Mark about this. His understanding of the subject is limited." -- July 25, 2017. Musk was targeting Facebook Inc Chief Executive Mark Zuckerberg, who had downplayed Musk's warnings about the danger of artificial intelligence.

"A little red wine, vintage record, some Ambien ... and magic!" -- June 6, 2017. In an interview with the New York Times in August 2018, Musk said he takes Ambien and was having problems sleeping because of stress from his job.

"The rumor that I'm building a spaceship to get back to my home planet Mars is totally untrue" -- March 12, 2015. Musk has said he wanted his company SpaceX to develop a rocket capable of an unpiloted trip to Mars in 2022, with a crewed flight two years later.

source: news.abs-cbn.com