Bitcoin nears all-time high as U.S. futures ETF lists

LONDON/NEW YORK, Oct 19 (Reuters) – Bitcoin hit a six-month excessive and was inside hanging distance of its all-time peak on Tuesday as merchants guess the itemizing of the primary bitcoin futures-based U.S. exchange-traded fund might herald funding flows into cryptocurrencies.

The ProShares Bitcoin Technique ETF on NYSE Arca, owned by Intercontinental Trade Inc (ICE.N), listed on Tuesday below the ticker BITO.

That adopted the tip of a 75-day interval during which the U.S. Securities and Trade Fee might object to the itemizing.

The brand new ProShares ETF opened at $40.88 and was final at $41.64. ETFs are securities that monitor an asset and may be purchased or bought on a inventory trade. Analysts mentioned the ETF would possible simplify entry to cryptocurrencies for retail buyers.

“It might probably appeal to flows from buyers preferring the benefit of an ETF over the perceived threat of an trade,” mentioned Martha Reyes, head of analysis at crypto trade Bequant.

Bitcoin , the world’s largest cryptocurrency, touched $63,337.54after the itemizing, its highest since mid-April and close to its document of $64,895.22.

Identified all through its 13-year life for its volatility, bitcoin has risen by some 40% this month on hopes the appearance of bitcoin ETFs – of which a number of are within the works – will see billions of {dollars} managed by pension funds and different massive buyers movement into the sector.

Nonetheless, different analysts have cautioned the fund won’t make investments immediately in bitcoin – however in Chicago-traded futures – and so due to this fact any quick implications for flows could also be restricted.

However speculators have been wagering its launch is a optimistic sign for spot costs anyway.

Bitcoin futures rose 1.2%, final buying and selling at $62,380.

“This might result in extra fixed shopping for stress on CME, inflicting the open curiosity to rise. This may appeal to extra cash and carry alternatives, main to purchasing stress within the spot market,” cryptocurrency analysts at Arcane Analysis mentioned in a be aware.

Crypto ETFs have launched this yr in Canada and Europe amid surging curiosity in digital property. VanEck and Valkyrie are amongst fund managers pursuing U.S.-listed ETF merchandise, though Invesco on Monday dropped its plans for a futures-based ETF.

The Nasdaq on Friday authorised the itemizing of the Valkyrie Bitcoin Technique ETF and Grayscale, the world’s largest digital forex supervisor, plans to transform its Grayscale Bitcoin Belief (GBTC.PK) right into a spot bitcoin ETF, the corporate confirmed. read more

Reporting by John McCrank in New York, Tom Wilson in London and Tom Westbrook in Singapore; enhancing by Kim Coghill and Jason Neely

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