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Bitcoin Aims for New Record High as Futures ETF Debuts Today

Bitcoin Aims for a New Record as Futures ETF Debuts Today

Created by TradeOr

3rd Party Analysis 19 Oct 2021

Key Takeaways:

  • Bitcoin’s price remains steady near $63,000 as crypto market cheers ETF approval
  • The Bitcoin Strategy exchange-traded fund lands for trading at the NYSE today

What’s Today’s News in Crypto?

The Securities and Exchange Commission approved the first-ever Bitcoin futures exchange-traded fund. Finally, after over eight years of waiting and multiple applications rejected, US regulators gave the go-ahead to Bitcoin Strategy ETF.

That said, the firm that packaged the ETF, ProShares, became the first-mover in bridging the gap between cryptocurrency and exchange-traded funds. More ETF products are expected to arrive even this week after they receive their review from the SEC.

The first Bitcoin futures ETF is expected to hit the New York Stock Exchange today. What this means is that millions of brokerage clients, both individuals and professionals, would be able to get exposure to bitcoin.

However, this wouldn’t actually be real bitcoin. Instead, investors who purchase the Bitcoin Strategy ETF will get a bundle of futures contracts tied to the price of bitcoin. On that note, many individual crypto backers prefer to get their share of bitcoin by going to the market directly.

What’s the Price of Bitcoin?

Against this backdrop, the price of bitcoin hovers near $63,000 on Tuesday, the day of the Bitcoin ETF launch. With that in mind, the original cryptocurrency is steadily pushing toward its record high of $64,800.

Presently, bitcoin is just about $2,500, or 3.5%, away from its highest-ever price. On Monday, the flagship token gained about 5% and traded at a session high of $62,620 per token. Earlier today, bitcoin jumped to a new high of $62,950 per coin. That means the price of bitcoin has more than doubled this year from its opening level of $29,100.

Still, as the first Bitcoin ETF makes its debut on the stock market, the milestone is another step toward connecting cryptocurrencies with traditional markets. The junction is expected to bring in new players, particularly institutions looking to get access to cryptos.

Elsewhere in Crypto

Among other cryptocurrencies, the price of the Ethereum token almost turned negative on Monday. Ether climbed to an intraday high of $3,900 but then momentum faded and the coin slipped to levels near $3,700. On Tuesday, Ether is back near its weekly high with price floating near $3,850. Dogecoin, the cryptocurrency created as a joke, advanced about 5% to a price of $0.25 per coin.