Bitcoin hit a six-month high and was within striking distance of its all-time peak on Tuesday as traders bet an anticipated listing of a futures-based US exchange-traded fund could herald investment flows into cryptocurrencies.
Bitcoin, the world’s biggest cryptocurrency, rose as much as 1.5 percent during the Asia session to $62,991, its highest since mid-April and near its record of $64,895. It last traded flat.
For the latest headlines, follow our Google News channel online or via the app.
Known throughout its 13-year life for its volatility, bitcoin has risen by some 40 percent this month on hopes the advent of bitcoin exchange-traded funds (ETFs) -- of which several are in the works -- will see billions of dollars managed by pension funds and other large investors flow into the sector.
ETFs are securities that track an asset and can be bought or sold on a stock exchange.
ProShares’ Bitcoin Strategy ETF is expected to list on Tuesday under the ticker BITO, provided the US regulator, the Securities and Exchange Commission, does not object.
Analysts said the ETF would also likely simplify access to cryptocurrencies for retail investors.
“It can attract flows from investors who prefer the ease of an ETF over the perceived risk of an exchange,” said Martha Reyes, head of research at crypto exchange Bequant.
Still, other analysts have cautioned the fund will not invest directly in bitcoin -- rather in Chicago-traded futures -- and so therefore any immediate implications for flows may be limited.
But speculators have been wagering its launch is a positive signal for spot prices anyway.
Bitcoin futures rose 1.2 percent, last trading at $62,380.
“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,” cryptocurrency analysts at Arcane Research said in a note.
Crypto ETFs have launched this year in Canada and Europe amid surging interest in digital assets. VanEck and Valkyrie are among fund managers pursuing US-listed ETF products, although Invesco on Monday dropped its plans for a futures-based ETF.
The Nasdaq on Friday approved the listing of the Valkyrie Bitcoin Strategy ETF and Grayscale, the world’s largest digital currency manager, is planning to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF, CNBC reported.
ProShares ETF is set to begin trading on Tuesday after a 75-day period during which the SEC could object to its listing elapsed on Monday.
US reviews sanctions policy, warns of threat from cryptocurrenciesPresident Joe Biden’s administration on Monday announced a set of recommendations to revamp its use of economic sanctions to make them a more ... World News
China to add cryptocurrency mining to ‘negative list’ of industriesChina has added cryptocurrency mining to a draft list of industries in which investment is restricted or prohibited, although it reduced the number of ... Technology
Explainer: What’s new in China’s intensified crackdown on cryptocurrencies?China’s most powerful regulators have intensified the country’s crackdown on cryptocurrencies with a blanket ban on all crypto transactions and crypto ... Features
US Justice Dept launches new initiatives on cryptocurrencies, contractor hacksUS Deputy Attorney General Lisa Monaco on Wednesday unveiled two new Justice Department enforcement initiatives aimed at targeting cryptocurrencies ... World News
Bitcoin slips after China central bank declares cryptocurrencies illegalBitcoin fell nearly 5 percent on Friday after China’s central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from ... Economy
UAE securities authority and Dubai World Trade Centre sign crypto trading agreementThe United Arab Emirates’ Securities and Commodities Authority has signed an agreement with the Dubai World Trade Center Authority (DWTCA) aimed at ... Economy
UK financial regulator warns on cryptocurrency ads after Kardashian postCryptocurrency advertisements, particularly from social media influencers, should face regulation according to the head of Britain’s financial ... Technology