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Bitcoin sits below all-time high after U.S. ETF debut

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A illustration of the digital cryptocurrency Bitcoin is seen on this image illustration taken October 19, 2021. REUTERS/Edgar Su

HONG KONG, Oct 20 (Reuters) – Bitcoin hovered under file ranges on Wednesday, the day after the primary U.S. bitcoin futures-based exchange-traded fund (ETF) started buying and selling, a growth that market contributors say is more likely to drive funding into the digital asset.

The world’s main cryptocurrency was final at $63,998, off 0.4%, however nonetheless inside a brief soar of its file of $64,895.22, hit April 14 this yr.

It reached as excessive as $64,499 on Tuesday, late within the U.S. day.

Earlier on Tuesday, the ProShares Bitcoin Technique ETF closed up 2.59% at $41.94 after its first day of buying and selling, with round $1 billion price of shares buying and selling fingers on Intercontinental Change Inc’s ICE.N Arca alternate.

Buying and selling seemed to be dominated by smaller buyers and high-frequency buying and selling corporations, analysts mentioned, noting the absence of huge block trades indicated that establishments have been seemingly staying on the sidelines.

James Quinn, managing accomplice at Q9 Capital, a Hong Kong-based cryptocurrency non-public wealth supervisor, mentioned the launch of the brand new product was “significant” for bitcoin.

Theoretically, any licensed brokerage agency within the U.S. who needs to tackle this ETF can accomplish that as simply as another ETF, which ought to make it obtainable to plenty of of us,” mentioned Quinn.

Whereas the ETF relies on bitcoin futures, Quinn mentioned the trades and hedges underpinning the ETF means exercise will movement into the spot market and the bitcoin value.

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.

Ether , the world’s no. 2 cryptocurrency, was down 0.39% on the day at $3,861, in sight of a six-week excessive, however a approach away from its all-time excessive of $4,380, hit on Could 12.

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

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