Bitcoin kept going on its climb toward record highs, increased by optimism for the upcoming creation of the first ever Bitcoin futures ETF in the United States by asset manager ProShares.
The largest crypto delivered gains 1.5% higher to get close to $62,250. It is now more than doubled this year during volatile trading. The April record is right under $64,870.
ProShares plans to start their fund on the NY Stock Exchange this Tuesday, its chief executive Michael Sapir said during an interview. The news is the latest sign of how crypto-related investments are now getting more mainstream.
“ETFs mean this year Bitcoin might see several billions come into management which might keep the whole space buzzing,” Edward Moya, an analyst at the Oanda Corp., said in a note.
The prospect of greater interest in Bitcoin from retail and institutional investors is strengthening the coin, whose 2021 climb far outweighs the returns from normal assets such as bonds, stocks, and gold. That is a marked change from the mid-year, when concerns about its energy and a harsh cryptocurrency crackdown within China sent prices falling under $30,000.
Other coins are also higher this week, including the number two coin, Ether.
Also, crypto-linked stocks rallied this Monday, including exchange platform Coinbase Global Inc., miner Riot Blockchain Inc. and Riot’s London-based peer Argo Blockchain Plc.
The technical chart for Bitcoin during this rally is a worry for Rick Bensignor, the president of Bensignor Strategies, who said in a message that being so close to highs could make him “think twice about purchasing Bitcoin right now.”
Noelle Acheson, lead of market insights at Genesis Trading, warned about the possible demand for a futures-based Bitcoin ETF.
“It is another big step in the convergence between crypto and traditional markets,” she stated. “But, I do believe there will be maybe not quite as much demand for this service as the market seems to be thinking.”
“Bitcoin now has a strong position as it reaches its last resistance at $64,000 higher which a breakout will be for $100,000,” said Rich Ross, strategist at Evercore. “Q4 offers fertile ground for speculative people.”
Author: Steven Sinclaire