Bitcoin has hovered below its April highs, a day after the first Bitcoin-based exchange-traded fund (ETF) began trading. A development that market participants say is likely to boost investment in the cryptocurrency.
The world’s leading cryptocurrency was at $63998 today, down 0.4% on the previous day, but still a few steps away from its record high of £64895.22 reached on April 14. It even reached the value of 64499 dollars at the end of the day on Tuesday.
Earlier on Tuesday, the ProShares Bitcoin Strategy ETF closed up 2.59% at $41.94 after its first day of trading, with around $1 billion worth of shares traded.
Trading appears to be dominated by small investors and high-frequency trading companies for now, analysts said. The lack of block trades, meanwhile, indicates that institutions are sitting on the sidelines, at least temporarily https://rankhaya.com/ไวอากร้าสำหรับผู้หญิง-female-via/.
“The launch of this new product is significant for Bitcoin,” said James Quinn, managing partner of Q9 Capital, a Hong Kong-based private cryptocurrency asset manager. “Theoretically, any US-licensed brokerage firm that wants to invest in this new ETF can do so as easily as any other ETF, which should make it available to many people.”
While Bitcoin’s value has risen nearly 45% this month, the advent of the US Bitcoin ETF resonates for some as the hope that billions of dollars managed by pension funds will flow into the cryptocurrency, driving its value even higher.
“Bitcoin futures have been overseen by the Commodity Futures Trading Commission for four years and ETFs are regulated by the SEC, which provides some level of investor protection,” SEC Chairman Gary Gensler said Tuesday.
“Yet it’s still a highly speculative asset class and investors need to understand that underneath there is the same volatility and speculation,” he told CNBC.
Read also > CHINA BANS BITCOIN, HONG KONG STOCK MARKET PLUNGES
Featured Photo : © QuoteInspector
