Bitcoin Hits All-Time High Above $ 66K Thanks to Strength of ProShares ETF Debut

The latest rally appears to be fueled by the successful debut on Tuesday of the first ever US bitcoin futures exchange-traded fund.

Bitcoin, the world’s largest cryptocurrency by market cap, has hit a new all-time high above $ 66,000, marking a full recovery from a months-long decline and extending the year’s gains to nearly 130%.

The cryptocurrency broke the previous price record of $ 64,889 set in April and was changing hands at $ 66,685 at 15:44 UTC (11:44 a.m. ET).

The largest cryptocurrency appears to have gotten a boost Tuesday since the launch of the ProShares Bitcoin Strategy ETF, the first exchange-traded fund approved by the US Securities and Exchange Commission to invest in bitcoin futures.

The new fund, which is listed on the New York Stock Exchange under the ticker symbol BITO, accumulated $ 570 million in assets on its first day and amassed $ 1 billion in trading volume, ranking it among the most successful launches of all. the times.

In the coming weeks, several more ETFs based on bitcoin futures may debut in the US, opening up the potential for savvy US crypto investors to engage in what is known as a “cash and carry arbitrage strategy.” “.

These ETFs would buy bitcoin futures contracts, at regulated venues like the Chicago Mercantile Exchange (CME), in an attempt to replicate the price performance of the cryptocurrency rather than buying actual bitcoins.

Reference: coindesk.com

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