Exchange Traded Fund, Bitcoin close to record price!
The Exchange Traded Fund (ETF) has been launched in the United States since last Tuesday. This is the first bitcoin based trading in the country to make history in a short period of time. Trader thinks that this ETF can be very important in investing in cryptocurrency.
Pro Shares Bitcoin strategically rose 2.59% to 41.94 on the first day of ETF trading. The ETF is currently considered by the US Securities and Exchange Commission to be a very important issue for cryptocurrencies . The ETF is expected to raise the price of Bitcoin to 64,000. This is the highest price since mid-April. So far the record price of Bitcoin is close to 64,895.22.
Bitcoin, the world’s largest cryptocurrency, is best known for its uncertainty. Bitcoin prices have risen about 45% this month. Many feel that the advent of ETFs has had a major impact on the price of Bitcoin.
Dave Nadig, chief investment officer and research director at ETF Trends, said there were very few block transactions at BITO on Tuesday, proving that small investors and high-frequency trading firms dominated the transaction. He added: “I think what we saw today was retail. HFT is trying to find Algo Trading arbitrators, and a lot of companies are sitting around and watching.”
Crypto ETFs have been launched in Canada and Europe this year to boost investor interest in digital assets. Bitcoin Futures has been overseen by the Commodity Futures Trading Commission for four years and is regulated by ETFs, the SEC. That provides some level of protection for investors, SEC Chairman Gary Gensler said Tuesday. “Yet, it is still a fairly speculative class of assets and investors should understand that there is similar instability and speculation surrounding it,” he said.
It remains to be seen how far this new trading will take cryptocurrency in the future.