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Bitcoin ETF optimism feeds latest cryptocurrency rally
Bitcoin has surged more than 40% this month putting it within touching distance of all-time records.
The world’s biggest cryptocurrency by market value, rose 1.5% during the Asia trading session on 19 October to $62,991, its strongest level since the record peak of $64,895 struck in April 2021.
Powering the crypto rally are hopes for bitcoin exchange traded funds (ETFs) to gain regulatory approval, of which several are in the works, which could open the floodgates to billions of dollars managed by pension funds and other institutional investors to flow into the sector.
‘In addition to the launch of the ProShares Bitcoin futures ETF, Interactive Brokers said it will allow Registered Investment Advisors in the US to invest in bitcoin and other cryptocurrencies,’ pointed out Neil Wilson of Markets.com.
As we went to press ProShares’ Bitcoin Strategy ETF was expected to have listed under the ticker BITO, assuming it gained the official thumbs-up from the US watchdog, the Securities and Exchange Commission.
The ETF will not invest directly in bitcoin but in Chicago-traded bitcoin futures, so may not have an immediate impact on flows, said analysts.
But speculators have been betting heavily that the ETF launch, and many others like it, is the sort of positive signal for the bitcoin market that could push spot prices to new records.
The bitcoin market is currently valued at $1.17 trillion and bulls continue to talk up its chances of narrowing the gap on gold, today worth roughly 10-times as much.