Bitcoin nears record high ahead of futures ETF listing

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A illustration of the digital cryptocurrency Bitcoin is seen on this image illustration taken October 18, 2021. REUTERS/Edgar Su

  • At $62,991, bitcoin close to its peak of $64,895
  • ProShares futures-based ETF anticipated to checklist Tuesday

SINGAPORE, Oct 19 (Reuters) – Bitcoin hit a six-month excessive and was inside placing distance of a file on Tuesday as merchants guess an anticipated itemizing of a futures-based U.S. trade traded fund may herald funding flows into bitcoin and cryptocurrency property.

Bitcoin , the world’s greatest cryptocurrency by market worth, rose so far as 1.5% throughout the Asia session to $62,991, its strongest degree because the file peak of $64,895 in April.

It’s up some 40% in October on hopes that the arrival of bitcoin trade traded funds (ETF), of which a number of are within the works, will permit billions of {dollars} managed by pension funds and different institutional traders to circulation into the sector.

ProShares’ Bitcoin Technique ETF is predicted to checklist on Tuesday underneath the ticker BITO, offered the U.S. regulator, the Securities and Trade Fee, doesn’t object.

Analysts cautioned that the fund is not going to make investments instantly in bitcoin – fairly in Chicago-traded futures – and so might not have any speedy implications for flows. However speculators have been wagering its launch is a optimistic sign for spot costs anyway.

Bitcoin futures rose on Tuesday, final buying and selling at $62,690, and spot costs may rise if money retains flowing in, stated cryptocurrency analysts at Arcane Analysis.

“This might result in extra fixed shopping for strain on CME, inflicting the open curiosity to rise. It will entice extra cash and carry alternatives, main to purchasing strain within the spot market,” they stated in a notice.

Crypto ETFs have launched this yr in Canada and Europe amid surging curiosity in digital property. VanEck and Valkyrie are amongst fund managers pursuing U.S.-listed ETF merchandise, though Invesco on Monday dropped its plans for a futures-based ETF.

The Nasdaq on Friday accredited the itemizing of the Valkyrie Bitcoin Technique ETF and Grayscale, the world’s largest digital forex supervisor, is planning to transform its Grayscale Bitcoin Belief right into a spot bitcoin ETF, CNBC has reported.

ProShares ETF is about to start commerce on Tuesday after a 75-day interval throughout which the SEC may object to its itemizing elapsed on Monday.

Ether the second-largest cryptocurrency, has tracked bitcoin’s rise and in addition traded firmly on Tuesday. It was final up 1.2% at $3,790.

Bitcoin nears file excessive

Reporting by Tom Westbrook; Enhancing by Kim Coghill


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