Bitcoin edges closer to new record ahead of first ETF launch
- Bitcoin tested the $63,000 level on Tuesday for the first time since April ahead of the launch of the first exchange-traded fund tracking the cryptocurrency.
- The long-awaited ProShares' ETF will start trading under the ticker "BITO" on Tuesday.
- Analysts have predicted bitcoin will surge in value as a result.
Bitcoin tested the $63,000 level on Tuesday for the first time since April ahead the launch of the first exchange-traded fund tracking the cryptocurrency.
ETF provider ProShares said on Monday its bitcoin futures fund would start trading on Tuesday.
Bitcoin rose as much as 2.6%, to $62,961.45. That puts it just 3% from its all-time high of $64,869.78 reached on April 14.
After largely treading water over the summer, bitcoin has been steadily rallying in recent weeks, partly because of the anticipation around regulatory approval of an ETF backed by the token. It's set for a gain of around 41% so far in October, the largest monthly increase since December.
"The cryptocurrency has rallied in recent weeks as news picked up that the first US bitcoin ETF would be approved," Deutsche Bank said in a note to clients Tuesday.
The ProShares Bitcoin Strategy ETF will be listed on the Nasdaq and investors will be able to trade it like a stock, without having to own any bitcoin.
"BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a bitcoin wallet, or are concerned that these providers may be unregulated and subject to security risk," Michael Sapir, CEO of ProShares, said in a statement.
The SEC is set to approve at least two more bitcoin futures this month: the VanEck Bitcoin Strategy ETF, and the Valkyrie Bitcoin Strategy ETF. ETF provider and asset manager Invesco was originally on that list, but this week dropped its plans.