Bitcoin peaked in six months, trading at a distance from an all-time high on Tuesday as traders bet that an expected listing of a futures-based US exchange-traded fund will lead to investments in bitcoin and crypto. Bitcoin, the world's largest cryptocurrency by market value, rose 1.5% during the Asian session to $62,991, the highest since its all-time high of $64,895 in April. It rose about 40% in October on hopes that with the launch of Bitcoin Exchange Traded Funds (ETFs),
Several of which are still underway, billions of dollars will be managed by pension funds and other investors in the area. flow. ProShares' Bitcoin Strategy ETF is expected to trade under the ticker symbol BITO on Tuesday unless the U.S. Securities and Exchange Commission objects. Analysts have warned that the fund will not invest directly in Bitcoin more likely in Chicago-traded futures and therefore may not have a direct impact on cash flow.
However, speculators have bet that the launch is a positive signal for spot prices anyway. Bitcoin futures rose Tuesday, with the latest trade at $62,690, and spot prices could fall quickly if money continues to flow, according to crypto analysts at Arcane Research."This could lead to more constant buying pressure on CME, causing the open interest to rise.
This will attract more cash and carry opportunities, leading to buying pressure in the spot market," they said in a note. Due to the growing interest in digital assets, crypto ETFs were launched in Canada and Europe this year. VanEck and Valkyrie are among the fund managers looking for US-listed ETF products, despite Invesco abandoning its proposed futures ETF on Monday.
The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday and Grayscale, the world's largest digital currency manager, is considering converting its Grayscale Bitcoin Trust into a spot Bitcoin ETF, CNBC reported. The ProShares ETF will start trading on Tuesday, after a 75-day period during which the SEC may object to the listing on Monday. Ether, the second largest cryptocurrency, followed Bitcoin's rise and also traded at a strong pace on Tuesday. More recently, it increased 1.2% to $ 3,790.
Sources:- Money control
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