Bitcoin reaches new heights as new fund launches open the market to a wider range of investors | Business News

Bitcoin hit a record high after the launch of a new exchange-traded fund (ETF) linked to cryptocurrencies-it is likely to be open to a wider class of investors.

Prices exceeded $ 67,000 on Wednesday, surpassing previous records just below the $ 65,000 set in April.

Bitcoin, the world’s leading cryptocurrency, sank to less than $ 30,000 during the summer as concerns over Chinese regulations settled.

Bitcoin hit a record high in April

The numbers released earlier this year 2.3 million UK adults own crypto assets Despite the risk warning, it increased by 400,000 year-on-year, including Bitcoin.

The Financial Conduct Authority (FCA) states that consumers need to be prepared to lose all their money when investing in unregulated products.

However, Bitcoin is currently profitable with the launch of the first US ETF linked to it.

Such funds track assets, sectors, or commodities, but can be bought and sold by investors on the stock exchange.

Tuesday was the first day of trading for the ProShares BitCoin Strategy ETF, and its stock rose 2.6% before it rose further on Wednesday.

Instead of investing directly in Bitcoin, ETFs invest in cryptocurrency-linked futures markets.

Michael Sapir, CEO of ProShares, launched an ETF this week

However, this development is expected to bring a new class of investors, as well as investors with traditional securities accounts that can buy and sell ETFs.

ProShares CEO Michael Sapir said in a statement earlier this week, “I believe many investors are eagerly awaiting the launch after years of striving to launch a Bitcoin-linked ETF. I am. “

He said the ETF “will open up its exposure to Bitcoin to the majority of investors who have securities accounts.”

They say, “I’m happy with the purchase of stocks and ETFs, but I don’t want to experience the tedious learning curve of establishing another account with a cryptocurrency provider and creating a Bitcoin wallet, or these providers. May be an investor who is concerned that Bitcoin is unregulated and may be subject to security risks, “said Sapil.

Bitcoin is attractive to anyone holding an investment portfolio because it moves independently of other assets such as stocks and bonds.

Its role may be compared to the role of gold, which is considered a valuable store when volatility occurs elsewhere, but cryptocurrencies have a much shorter track record.

Others see government-independent digital currencies as the future of finance, but they are not yet widely used as a payment method.

NS Energy-intensive “mining” process There have been sharp criticisms due to the environmental impact of computers generating Bitcoin.

Regulations also pose a threat, China last month Declare Bitcoin transactions illegal..

In the United States, the Securities and Exchange Commission chairman states that cryptocurrencies do not provide sufficient protection for investors.

James Quinn, Managing Partner of Q9 Capital, Hong Kong-based Cryptocurrency Private Wealth Manager, said:
The launch of the new ETF was “meaningful” for Bitcoin as it could be “available to many”.

Bitcoin reaches new heights as new fund launches open the market to a wider range of investors | Business News

Source link Bitcoin reaches new heights as new fund launches open the market to a wider range of investors | Business News

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