Traders bet that an early listing of a futures-based US exchange-traded fund could herald cryptocurrency investment flows. ETFs are securities that track an asset and can be bought or sold on a stock exchange. “It can attract flows of investors who prefer the ease of an ETF over the perceived risk of an exchange,” said analyst Martha Reyes, head of research at cryptocurrency exchange Bequant.
Still, other analysts have warned that the fund will not invest directly in Bitcoins, but in futures traded in Chicago, and therefore the immediate implications for flows may be limited.
But speculators have bet that its launch is a positive sign for spot prices anyway. “This could lead to more constant buying pressure on CME, leading to an increase in open interest. This will attract more cash and carry opportunities, creating buying pressure in the spot market, “said cryptocurrency analysts at Arcane Research.
Crypto ETFs launched this year in Canada and Europe amid growing interest in digital assets. The Nasdaq approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday and Grayscale, the world’s largest digital currency manager, plans to convert its Grayscale Bitcoin Trust (GBTC.PK) into a spot Bitcoin ETF, CNBC reported.
After largely floating through the summer, Bitcoin has rallied steadily in recent weeks, in part due to anticipation surrounding regulatory approval of a token-backed ETF. The prospect of increased interest in Bitcoin from institutional and retail investors is bolstering the token, whose rise in 2021 dwarfs returns on traditional assets like stocks, bonds and gold. That’s a marked change from the middle of the year, when concerns about its energy use and a harsh crackdown on cryptocurrencies in China drove prices below $ 30,000.
Cryptocurrency-linked stocks rallied yesterday, including exchange firm Coinbase Global, miner Riot Blockchain, and UK-based Riot’s Argo Blockchain. On this day in Asia, South Korea’s Woori Technology Investment advanced.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
