Bitcoin Hovers Near 6-Month High on ETF Hopes and Inflation Concerns – .

Bitcoin Hovers Near 6-Month High on ETF Hopes and Inflation Concerns – .

TOKYO (Reuters) – Bitcoin approached six-month highs on Monday ahead of the listing of the first bitcoin exchange-traded funds (ETFs) based on US futures contracts, which investors hope will increase volumes of cryptocurrency transactions.
If the U.S. Securities and Exchange Commission (SEC) does not object, the Bitcoin ProShares Strategy ETF is ending a 75-day period since the fund manager filed plans and could start trading on Tuesday.

Other fund managers could list bitcoin ETFs in the coming days and weeks, which could lead to a larger investment in digital assets.

The world’s largest cryptocurrency last stood at $ 62,288, near Friday’s six-month high of $ 62,944 and not far from its all-time high of $ 64,895 in April.

Ether, another popular token used on the Ethereum blockchain, traded around $ 3,866 and has risen in tandem with bitcoin since mid-September.

“The news of a futures monitoring ETF suite is not new to those who follow space closely, and for many it is a step forward but not the game changer that some feel, ”said Chris Weston, head of research at Pepperstone. in Melbourne, Australia.

“We’ve been excited about a spot ETF before, and it might require more work on the regulatory front. “

Some of the fund managers who have requested the launch of bitcoin ETFs in the US include the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie and Galaxy Digital funds.

The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday. Grayscale, the world’s largest digital currency manager, plans to convert its flagship product, the Grayscale Bitcoin Trust, into a spot bitcoin ETF, CNBC reported on Sunday.

After months of back-and-forth between the SEC and potential bitcoin futures ETF issuers, the regulator appears poised to give the green light to a handful of deposits that would open the door to wider access to cryptocurrencies for retail and institutional investors.

Under the rulesets used by ETF issuers, the SEC does not have to give explicit approval to ETFs, which can be launched at the end of a 75-day period if the US regulator has not. no objection.

Cryptocurrency investors expect the approval of the first U.S. bitcoin ETF to trigger an influx of money from institutional players who cannot invest in digital coins at this time.

Growing concerns about global inflation have also increased appetite for bitcoin, which is in limited supply unlike the plentiful amount of currency issued by central banks in recent years as monetary authorities print money. to boost their savings.

“Unlike his previous rallies, there doesn’t seem to be a lot of exuberance in the market. A growing number of investors have started to think that inflation may not be temporary and it is possible that bitcoin will be chosen as an inflation hedge, ”said Makoto Sakumra, a researcher at the NLI Research Institute.

(Reporting by Hideyuki Sano in Tokyo and Tom Westbrook in Singapore; Editing by Vidya Ranganathan and Sam Holmes)


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