Bitcoin Sits Below All-Time High After US ETF Debut – .

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Bitcoin Sits Below All-Time High After US ETF Debut – .


A representation of the Bitcoin virtual cryptocurrency can be seen in this photo illustration taken on October 19, 2021. REUTERS / Edgar Su

HONG KONG, Oct. 20 (Reuters) – Bitcoin hovered below record highs on Wednesday, the day after trading in the first U.S. bitcoin-based exchange-traded fund (ETF) began, a development that market players say. market, is likely to stimulate investment in digital assets.

The world’s leading cryptocurrency was valued at $ 63,998, down 0.4%, but still a few steps from its all-time high of $ 64,895.22, reached on April 14 of this year.

It hit $ 64,499 at the end of the day in the United States on Tuesday.

Earlier on Tuesday, the ProShares Bitcoin Strategy ETF closed 2.59% higher at $ 41.94 after its first day of trading, with around $ 1 billion in shares traded on the ICE.N Arca exchange. ‘Intercontinental Exchange Inc. Read more

The exchanges appear to be dominated by small investors and high-frequency trading companies, analysts said, noting that the lack of block trading indicated that institutions were likely to be on the sidelines.

James Quinn, managing partner of Q9 Capital, a private cryptocurrency wealth manager based in Hong Kong, said the launch of the new product was “significant” for bitcoin.

Theoretically, any brokerage firm licensed in the US that wants to take this ETF can do so as easily as any other ETF, which should make it available to a lot of people, ”Quinn said.

While the ETF is based on bitcoin futures, Quinn said the transactions and hedges that underpin the ETF mean that activity will move towards the spot market and the price of bitcoin.

Crypto ETFs were launched this year in Canada and Europe amid growing interest in digital assets. VanEck and Valkyrie are among the fund managers looking for US-listed ETF products, although Invesco on Monday abandoned plans for a futures ETF.

Ether, the name of the world. 2, was down 0.39% on the day to $ 3,861, set for a six-week high, but nowhere near its all-time high of $ 4,380 reached on May 12.

Reporting by Alun John in Hong Kong and Tom Westbrook in Singapore; Editing by Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

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