Singapore: Bitcoin It reached a six-month high and was within striking distance of a record on Tuesday as traders anticipated listing of a futures-based US exchange-traded fund beginning an investment inflow into bitcoin and cryptocurrency assets.
Bitcoin, the world’s largest cryptocurrency by market cap, rose 1.5% to $62,991 during the Asia session, its strongest level since its record peak of $64,895 in April.
It is up almost 40% in anticipation of the arrival of bitcoin exchange-traded funds in October (ETFs), many of which are under way, will allow billions of dollars managed by pension funds and other institutional investors to flow into the region.
The ProShares Bitcoin Strategy ETF is expected to be listed on Tuesday under the ticker BITO, provided that the US regulator, Securities and Exchange Commission, does not oppose.
Analysts cautioned that the fund will not invest directly in bitcoin — but rather in Chicago-traded futures — and therefore may not have any immediate implications for the inflows. But speculators are betting its launch is a positive sign for spot prices anyway.
Cryptocurrency analysts at Arcane Research said bitcoin futures rose on Tuesday, trading last at $62,690 and that spot prices could move higher if cash flows continue.
“This could lead to continued buying pressure on the CME, leading to an increase in open interest. This will attract more cash and carry opportunities, thereby increasing buying pressure in the spot market,” he said in a note.
Crypto ETFs have launched in Canada and Europe this year amid growing interest in digital assets. vanack and Valkyrie are among fund managers pursuing US-listed ETF products, though Invesco dropped its plans for futures-based ETFs on Monday.
The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday, and the world’s largest digital currency manager Grayscale is planning to convert its Grayscale Bitcoin Trust to a spot bitcoin ETF, CNBC reported.
ProShares The ETF is set to begin trading Tuesday after a 75-day period during which the SEC can object to the listing that ended Monday.
Ether, the second-largest cryptocurrency, has tracked the growth of Bitcoin and traded strongly on Tuesday as well. It was last up 1.2% at $3,790.
Bitcoin, the world’s largest cryptocurrency by market cap, rose 1.5% to $62,991 during the Asia session, its strongest level since its record peak of $64,895 in April.
It is up almost 40% in anticipation of the arrival of bitcoin exchange-traded funds in October (ETFs), many of which are under way, will allow billions of dollars managed by pension funds and other institutional investors to flow into the region.
The ProShares Bitcoin Strategy ETF is expected to be listed on Tuesday under the ticker BITO, provided that the US regulator, Securities and Exchange Commission, does not oppose.
Analysts cautioned that the fund will not invest directly in bitcoin — but rather in Chicago-traded futures — and therefore may not have any immediate implications for the inflows. But speculators are betting its launch is a positive sign for spot prices anyway.
Cryptocurrency analysts at Arcane Research said bitcoin futures rose on Tuesday, trading last at $62,690 and that spot prices could move higher if cash flows continue.
“This could lead to continued buying pressure on the CME, leading to an increase in open interest. This will attract more cash and carry opportunities, thereby increasing buying pressure in the spot market,” he said in a note.
Crypto ETFs have launched in Canada and Europe this year amid growing interest in digital assets. vanack and Valkyrie are among fund managers pursuing US-listed ETF products, though Invesco dropped its plans for futures-based ETFs on Monday.
The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday, and the world’s largest digital currency manager Grayscale is planning to convert its Grayscale Bitcoin Trust to a spot bitcoin ETF, CNBC reported.
ProShares The ETF is set to begin trading Tuesday after a 75-day period during which the SEC can object to the listing that ended Monday.
Ether, the second-largest cryptocurrency, has tracked the growth of Bitcoin and traded strongly on Tuesday as well. It was last up 1.2% at $3,790.
.