Bitcoin set to step up in ETF line

Finance | Reuters 19 Oct 2021

Bitcoin hovered near six-month highs yesterday in anticipation of the listing of the first futures-based bitcoin exchange-traded funds in the United States, which investors hope will boost cryptocurrency trading volumes.

If the US Securities and Exchange Commission does not object, the ProShares Bitcoin Strategy ETF, which completes a 75-day period since the fund manager filed plans, could begin trading today.

Other fund managers could list bitcoin ETFs in the coming days and weeks, and that could lead to wider investments in digital assets.

The world's largest cryptocurrency last stood at US$62,288 (HK$484,600) after Friday's six-month high of US$62,944 and not far from its all-time high of US$64,895 in April. Ether, another popular token used on the Ethereum blockchain, was traded around US$3,866 and has been rising in tandem with bitcoin since mid-September.

"The news of a suite of futures-tracking ETFs is not new to those following the space closely, and to many this is a step forward but not the game-changer some are sensing," said Chris Weston, head of research at Pepperstone in Melbourne.

"We've been excited by a spot ETF before, and this may need more work on the regulation front."

After months of back-and-forth moves between the SEC and potential bitcoin futures ETF issuers, the regulator appears prepared to greenlight a handful of filings that would open the door to wider access to cryptocurrencies for retail and institutional investors alike.


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