A bitcoin futures ETF is coming next week. It could soon send the token soaring to $85,000, one analyst says.
bitcoinfutures exchange-traded fund is set to launch next week and is exciting investors.
- It could help power the price of bitcoin to a record high of $85,000, one analyst said.
A bitcoin futures exchange-traded fund is set to launch next week and is making the
It's not quite the pure
If investors buy into the fund heavily, bitcoin could hit a record high of $85,000 in the coming months, according to Edward Moya, senior market analyst at trading platform Oanda.
Bitcoin crossed $60,000 last week for the first time since April as excitement built. It was roughly flat on Sunday at $61,050, according to Bloomberg prices, putting it within reach of April's all-time high of just under $65,000.
"A successful bitcoin ETF launch next week could easily support bitcoin's run to record territory," Moya said. "Bitcoin mania has been brewing on social media platforms over the past couple weeks."
"[If] initial trading volumes are strong, bitcoin could have enough momentum to target the $74,500 region," Moya said. He added that bitcoin "could have a path towards $85,000" in the coming months.
Simon Peters, cryptoasset analyst at eToro, said: "The market is clearly reacting positively as we edge ever closer to the 'holy grail' of a bitcoin ETF of the underlying asset."
ProShares, a US specialist in exchange-traded products, is due to launch a
It is set to be called the
An exchange-traded fund is a type of security that trades on an exchange - meaning investors can buy and sell shares - and tracks the performance of an asset or group of assets.
The ProShares ETF will track bitcoin futures rather than bitcoin itself. Futures are contracts to buy and sell an asset at a predetermined price and time. They track movements in the price of bitcoin pretty closely but mean investors do not have to physically own the token.
SEC chief Gary Gensler has been reluctant to approve a pure bitcoin ETF, due in part to concerns about the wild price swings in the market.
But the SEC reckons a futures ETF is safer. Bitcoin futures are offered by the Chicago Mercantile Exchange, a huge financial institution. Investors also have to put down collateral to trade futures.
The ETF would allow retail and institutional investors to much more easily gain exposure to bitcoin, analysts said. "An SEC bitcoin ETF approval is a watershed moment for the crypto industry as this could be the key driver for getting the next wave of crypto investors," Moya said.
However, Matt Blom, global head of sales trading at crypto company Eqonex, said he thinks the SEC won't approve an ETF based on bitcoin itself.
"As great as it is to finally have this asset class recognized, the supply squeeze we all really want to see is still, just out of reach," he said.
Other companies - namely Invesco, Valkyrie and VanEck - have also applied to launch bitcoin futures ETFs and could see their products begin trading soon. ProShares did not immediately respond to a request for comment.
- Tata Tea Agni's campaign celebrates Indian women athletes and their passion and determination
- India targets $500 billion exports for FY23, says DGFT official
- Amazon’s virtual assistant Alexa is down and facing issues responding to voice commands
- LG Anil Baijal allows private offices in Delhi to run with 50% staff
- You have been paying more for detergents, soaps over the last three months