Bitcoin is heading for a new all-time high as a futures-based ETF makes its debut
The price of Bitcoin has climbed to new all-time highs on the back of investor excitement around the forthcoming launch of asset management ProShares’ first Bitcoin futures ETF in the US.
By 12:03 p.m. in Hong Kong time, the largest cryptocurrency had risen by 2.6 percent in Asian trading. In this year’s tumultuous trading, it’s increased by more than twofold. The all-time high for April is a little about 64,870 dollars.
According to ProShares’ CEO Michael Sapir, the fund will begin trading on Tuesday’s New York Stock Exchange. Investing in cryptocurrencies is becoming more commonplace, as evidenced by the recent shift.
Senior market analyst at Oanda Corp. Edward Moya noted that ETFs suggest that Bitcoin interest might see a few billion dollars managed this year which should keep the entire field buzzing.
Token’s 2021 rise surpasses returns from traditional assets like stocks, bonds, and gold, thanks to rising interest from institutional and ordinary investors. Prices fell below $30,000 in the middle of the year due to concerns about the cryptocurrency’s energy use and an intense crackdown in China.
This week has seen gains for several other cryptocurrencies, including Ether, the second-largest token by market capitalization. The Bloomberg Galaxy Crypto Index is nearing its highest point since May, according to Bloomberg data.
Many crypto-related companies’ stock prices rose on Monday, including Coinbase Global Inc., Riot Blockchain Inc., and Argo Blockchain Plc. Competitor in the United Kingdom. Woori Technology Investment Co. gained in Asia on Tuesday.
According to a letter he wrote, because Bitcoin is so near to its previous highs, Rick Bensignor of Bensignor Investment Strategies is wary of buying the cryptocurrency now.
Genesis Global Trading Inc.’s head of market analytics, Noelle Acheson, issued a warning about the potential demand for a Bitcoin ETF based on futures contracts.
According to the analyst, a significant step forward in the convergence of regular and crypto markets has been taken. “However, I believe that the market is overstating the demand for this product in terms of monetary value.”
As part of Grayscale Investments LLC, Genesis is converting its Bitcoin trust into an exchange-traded fund (ETF).
According to famous Bitcoin bull Tom Lee, co-founder of Fundstrat Global Advisors, others are more optimistic. Given the buzz, the futures-based Bitcoin ETF might garner more than $50 billion in inflows in its first year.
For Rich Ross, technical expert at Evercore ISI, Bitcoin is in a solid position as it faces penultimate resistance around $64,000, over which a breakout will aim at $100,000. A lot of money may be made on speculation in the final three months of the year.