The price of bitcoin soared to a new record on Wednesday, after the first US bitcoin ETF debuted on the New York Stock Exchange and fuelled a red-hot rally in the cryptocurrency.
The world’s largest cryptocurrency hit a historic peak of more than $66,400 at per the time of writing, rising by more than 5% from the day before. Late last week, ProShares received approval from the SEC to launch the first ever bitcoin futures ETF in the US. The Bitcoin Strategy ETF began trading on the NYSE on Tuesday under the ticker symbol “BITO,” which sent the price of bitcoin soaring shortly afterwards.
ProShares allegedly saw over 24 million shares trade hands after its listing on the stock exchange, creating a turnover of over $1 billion. According to Bloomberg, the Bitcoin Strategy ETF became the second-most traded fund to launch on record.
In the meantime, analysts at US research consultancy Fundstrat are anticipating that ProShare’s bitcoin ETF will attract substantial inflows to the tune of approximately $50 billion, which would translate to about $50 million per day in additional demand for the cryptocurrency itself.
Information for this briefing was found via ProShares and Fundstrat. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.