On Wednesday, bitcoin hit a new high, and the first bitcoin futures-based exchange-traded fund (ETF) in the United States added to its gains following a strong launch on Tuesday.
The world’s most valuable cryptocurrency was up 3.30 percent at $66,364.72, having touched a new high of $67,016.50, surpassing the previous high of $64,895.22 set on April 14 this year.
The ProShares Bitcoin Strategy ETF began trading on Tuesday, a step that market players believe will spur investment into the digital commodity.
On Tuesday, the ETF finished 2.59 percent higher at $41.94 than its beginning price of $40.88, and it continued to rise on Wednesday, closing 3.76 percent higher at $43.52.
After its prospectus was changed in a filing with the Securities and Exchange Commission, the Valkyrie Bitcoin Strategy ETF, which was set to debut on the Nasdaq on Wednesday, looked to be delayed. The Nasdaq anticipates the ETF to launch on Thursday, according to a source familiar with the situation, although this has yet to be verified.
Smaller investors and high-frequency trading companies looked to dominate trading, according to experts, who noted that the lack of huge block deals showed that institutions were likely waiting on the sidelines.
The debut of the new product was “important” for bitcoin, according to James Quinn, managing partner of Q9 Capital, a Hong Kong-based cryptocurrency private wealth manager.
Any licensed brokerage business in the United States that wants to take on this ETF may theoretically do so as simply as any other ETF, according to Quinn, which “should make it available to a lot more consumers.”
Despite the fact that the ETF is based on bitcoin futures, Quinn believes that the ETF’s trades and hedges will result in activity flowing into the spot market and the bitcoin price.
” This blog offers generic information. By no means, it is professional advice. The information aforementioned is believed to be factually correct. The information provided is solely based on the author’s judgment and is subject to change. This is not endorsed by any 3rd parties or other brands.”
Article Credits –
economictimes.indiatimes.com
