Bitcoin is approaching a record

Bitcoin hit a A six-month high and was striking a distance from an all-time high on Tuesday as traders bet an early listing of a US exchange-traded fund based on futures could herald investment flows in assets bitcoin and cryptocurrency.

Bitcoin, the world’s largest cryptocurrency by market value, rose 1.5% during the Asian session to US $ 62,991, its highest level since an all-time high of $ 64,895 in April.

It is up some 40% in October in hopes that the advent of bitcoin exchange-traded funds (ETFs), several of which are in the works, will enable billions of dollars managed by pension funds and other institutional investors. to pour into the area.

ProShares’ ETF Bitcoin Strategy is expected to be listed on Tuesday under the symbol BITO, provided the US regulator, the Securities and Exchange Commission, does not object.

Analysts have warned the fund will not invest directly in bitcoin – rather Chicago-traded futures – and therefore may not have immediate flow implications. But speculators have bet its launch is a positive signal for spot prices anyway.

Bitcoin futures rose on Tuesday, last trading at $ 62,690, and spot prices could rise if liquidity continues to flow, cryptocurrency analysts from Arcane Research said. .

“Constant purchasing pressure”

“This could lead to more constant buying pressure on CME, causing open interest to increase. This will attract more cash and carry opportunities, which will lead to buying pressure in the spot market.” , they said in a note.

Crypto ETFs were launched this year in Canada and Europe amid growing interest in digital assets. VanEck and Valkyrie are among the fund managers looking for US-listed ETF products, although Invesco on Monday abandoned plans for a futures ETF.

The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday and Grayscale, the world’s largest digital currency manager, is considering converting its Grayscale Bitcoin Trust into a bitcoin spot ETF, CNBC reported.

Ether, the second largest cryptocurrency, followed the rise in bitcoin and also traded firmly on Tuesday

The ProShares ETF is expected to start trading on Tuesday after a 75-day period in which the SEC could object to its listing has passed on Monday.

Ether, the second largest cryptocurrency, followed the rise in bitcoin and also traded firmly on Tuesday. It was up 1.2% for the last time at $ 3,790. – Reported by Tom Westbrook, (c) 2021 Reuters

Bitcoin is approaching a record

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