Bitcoin pulled back on Thursday from the all-time high it reached a day earlier following the launch of the first U.S. Bitcoin futures exchange-traded funds. However, analysts are still questioning the impact on cryptocurrency investment flows with the launch of more ETFs.
After hitting a record $67,000.16 on Wednesday, the world’s biggest cryptocurrency fell 3.02% to $64,000 at 10:45 Eastern Time.
Six months after reaching $64,895 its previous peak, Bitcoin rallied. This was due to the ProShares Bitcoin Strategy ETF’s launch.
Futures-based bitcoin ETFs are on the verge of being launched. The Valkyrie Bitcoin Strategy ETF will trade on Friday on the Nasdaq, under the ticker BTF. Valkyrie and Nasdaq confirmed that the ETF would be trading. Cboe indicated that the VanEck Bitcoin Strategy ETF would start trading on Cboe next week under the ticker “XBTF”.
The long-awaited launch of bitcoin ETFs has been greeted with excitement by investors who believe that it will encourage more investment from institutional and retail investors.
However, some major bank analysts expressed doubts about the longevity of the bitcoin price boost from the ProShares ETF. It trades under ticker BITO.
“Will the launch BITO itself bring in significantly more capital to bitcoin?” “We doubt it, given the many investment options bitcoin investors already have,” J.P. Morgan analysts wrote.
“The bulls see this ETF to be a new investment vehicle that will open up the possibility for fresh capital to enter the bitcoin markets. The new ETF is only an incremental addition to a crowded market of bitcoin investment vehicles.
Others predicted that bitcoin’s recent peak would bring more gains in the coming year.
“We believe it’s going up and we can reach $80 or $90,000. by the end of next year easy but that will not be without volatility,” stated Matt Dibb (COO) of Singapore-based Stack Funds.
He stated that traders have been starting to pay higher rates to borrow bitcoin futures. “That’s a sign we could be a little overextended and could see a pullback.”
Ether, the second-largest cryptocurrency in the world, rose 1%, to $4,203. This is close to its May record of $4,380.
