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The market data aggregators have recently witnessed the price of Bitcoin just sitting below its all-time high on Wednesday, October 20. It happened following the beginning of trade of the first ETF based on US Bitcoin futures, a notable development that the market participants believe is highly likely to drive investment into the digital asset ultimately contributing to the rise in its price.
Bitcoin Manages to Surge to $64,499 After the US ETF Debut
As reported on Tuesday, the ProShares Bitcoin Strategy ETF closed up 2.59% at the mark of $41.99 following its very first day of trading. A trade of around $1 billion worth of shares was witnessed on the INC.N Arca Exchange of Intercontinental Exchange Inc.
Analysts said that the trading seems to be dominated by smaller investors and high-frequency trading firms, noting that the large block trades are absent and it ultimately indicated that the institutions are preferring to stay on the sidelines.
The managing partner at Q9 Capital, a Hong Kong-based cryptocurrency private wealth manager, James Quinn, said the launch of the new product was meaningful for Bitcoin.
Quinn said that any brokerage firm in the United States who wants to take on this ETF can do as easily as any other ETF, which should make it available to a lot of people.
As the ETF is based on Bitcoin Futures, Quinn said that the trades and hedges are underpinning the ETF means activity will be flowing into the spot market and the price of Bitcoin.
The Emergence of Crypto ETFs Amid Rising Interest in Digital Assets
This year, Canada has witnessed an emergence of Crypto ETFs amid rising interest in digital assets. At present, Valkyrie and VanEck are among the fund managers pursuing US-listed ETF products, although Invesco dropped the idea for an ETF based on futures on Monday.