Asset Manager Fidelity to Launch Physical Spot Bitcoin ETF in Canada

The United States Securities and Exchange Commission (SEC) has rejected numerous Bitcoin ETF applications in the past. However, that hasn’t stopped asset managers and investment firms from applying again.

More Asset Managers are Entering the Crypto Space

Fidelity, the fourth-largest asset manager in the world with more than $4 trillion in assets under management, has applied to launch a physical spot Bitcoin ETF in Canada. The ETF will track Bitcoin’s spot price, giving investors exposure to the leading cryptocurrency.

According to the Financial Times, the Fidelity Advantage Bitcoin ETF (FBTC) is designed to invest in “physical” spot bitcoin. This latest development comes just a few weeks after the US SEC rejected VanEck’s Bitcoin ETF proposal.

Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research, stated that “It’s significant because the top-tier asset managers tend to be fast followers,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research. “They tend to take more of a wait-and-see approach towards investment trends, piggybacking on developments that have often been created by smaller, more nimble asset managers.”

The US is Still Behind on spot Bitcoin ETF

Fidelity has applied to launch a spot Bitcoin ETF in the United States, but the SEC is yet to approve the application. The US SEC has rejected numerous spot Bitcoin ETF proposals in the past, most recently the VanEck application.

According to the SEC, the cryptocurrency market is not ready for a spot Bitcoin ETF at the moment. The SEC had mentioned on numerous occasions that it still has concerns regarding the cryptocurrency market, especially in terms of price manipulation.

The regulatory agency had approved three Bitcoin futures ETFs. These funds track Bitcoin futures instead of the cryptocurrency’s spot price. The Bitcoin futures ETFs in the United States are; ProShares Bitcoin Strategy ETF (BITO), Valkyrie Bitcoin Strategy ETF (BTF) and VanEck Bitcoin Strategy ETF (XBTF).

Despite its rejection, market analysts and asset managers believe it is a matter of time before the SEC approves a spot Bitcoin ETF.

Greyscale Gets Scaled Down by Bitcoin ETFs

The recent launch of Bitcoin futures ETFs is slowly eroding their prowess as the big cheese of BTC.

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In the same time frame, Purpose Built Bitcoin ETF’s holding has grown as Greyscale continues to shrink. The fact that Greyscale’s premium in relation to their net asset value has also shrunk, currently selling at a 15% discount, is telling when you consider that in the same time span, Bitcoin has gone up in value. For this reason, their assets under management have rebounded back to just under $40 billion in Bitcoin alone.

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Their possible saving grace was their early pivot into Ethereum, and while they still have just $12.5 billion in Ethereum on their balance sheet, a number which has been steadily growing. Greyscale’s Ethereum Trust (ETHE) also follows the price of Ether much better than GBTC does Bitcoin. It won’t be long before Ethereum ETFs challenge this market as well.

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While the CME’s Ethereum futures have had a less than explosive start, I believe that ETFs will ignite a rally in Ethereum and bring Ether to a new all-time high just like Proshares did with Bitcoin. Others are less optimistic, ProShares and digital asset manager VanEck submitted filings with the SEC earlier this year to develop Ethereum-based ETFs, but they later withdrew their proposals. ProShares and VanEck both declined to comment on their decision. According to McClurg of Valkyrie, regulatory clearance before the end of next year is a “long shot” due to little trading volume in Ethereum futures markets. But hopes for first quarter of 2022 are still strong.

U.S. and E.U. regulators continue to hold outdated views of BTC;

While the third-world taking charge in the digital space race

During the recently held “Latin America Bitcoin and Blockchain Conference,” the El Salvadorian President, Nayib Bukele, came on stage looking like a character straight out of “Grand Theft Auto Vice City,” but his ambitions were closer to Alexander the great, according to the self-proclaimed dictator (jokingly) of El Salvador.

“Invest here and make all the money you want,” Bukele said in English, dressed all in white and wearing a reversed baseball cap, in the beach resort of Mizata. “This is a fully ecological city that works and is energized by a volcano.”

His plan is to build the world’s first “Bitcoin City,” funded initially by bitcoin-backed bonds. Half of the VAT levied would be used to fund the bonds issued to build the city, and the other half would pay for services such as garbage collection, Bukele said, estimating the public infrastructure would cost around 300,000 bitcoins.

As previously reported by Reuters, Samson Mow, chief strategy officer of blockchain technology provider Blockstream, told the gathering that the first 10-year issue, known as the “volcano bond,” would be worth $1 billion, backed by bitcoin and carrying a coupon of 6.5%. Half of the sum would go to buying bitcoin on the market, he said. Other bonds would follow.

After a five-year lock-up, El Salvador would start selling some of the bitcoin used to fund the bond to give investors an “additional coupon,” Mow said, positing that the value of the cryptocurrency would continue to rise robustly.

The bond would be issued on the “liquid network,” a bitcoin sidechain network. To facilitate the process, El Salvador’s government is working on a securities law, and the first license to operate an exchange would go to Bitfinex, Mow said.

Crypto exchange Bitfinex was listed as the book runner for the bond on a presentation behind Mow.

©Thegoldforecast.com

 

5 Best Cryptocurrency ETFs to Buy

Introduction to Bitcoin and cryptocurrencies

Bitcoin and cryptocurrencies have gained traction in recent years. What started with Bitcoin has grown to become a $3 trillion industry, with thousands of cryptocurrencies now available to investors all over the world.

Cryptocurrencies have become investment assets available to both retail and institutional investors. The entry of institutional investors into the cryptocurrency space has created the need to launch crypto-focused funds, allowing them to gain direct and indirect exposure to BTC and other cryptocurrencies.

What are ETFs?

An exchange-traded fund (ETF) is a security designed to track a cryptocurrency, an index, sector, commodity or other types of assets. Unlike the regular cryptocurrencies that are traded on crypto exchanges, the crypto ETFs are bought and sold on stock exchanges like regular stocks. An ETF can be designed to track the performance of anything ranging from an individual stock, commodity or asset to a large and diverse collection of securities.

An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets, but which can be purchased or sold on a stock exchange the same way a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

Top five crypto ETFs to buy now

There are numerous ETFs that track the performance of cryptocurrencies. Here are the top five ETFs that give you exposure to cryptocurrencies.

ProShares Bitcoin Strategy ETF (BITO)

This is the first cryptocurrency-focused ETF approved in the United States, and it generated a lot of buzzes. The ProShares Bitcoin Strategy ETF tracks the performance of Bitcoin futures contracts. The funds hold different Bitcoin futures contracts and have grown to have more than $1.4 billion in assets under management barely a month after it was approved by the US SEC. The BITO ETF has a 0.95% annual expense ratio or $95 for every $10,000 invested. Thus, making it one of the best Bitcoin futures ETFs currently available to investors. As Bitcoin’s adoption continues to increase, BITO’s value would increase as more institutional investors seek to gain exposure to BTC.

BITO ETF chart. Source: FXEMPIRE

Valkyrie Bitcoin Strategy ETF (BTF)

The Valkyrie Bitcoin Strategy ETF (BTF) is also a Bitcoin futures ETF that was launched a few days after BITO was approved by the SEC. BTF trades on the NASDAQ stock exchange and, similar to BITO, doesn’t invest directly in Bitcoin. Rather, BTF holds front-month Chicago Mercantile Exchange Bitcoin futures. BTF has nearly $60 million in assets under management with a 0.95% expense ratio. This ETF is set to become even more popular amongst investors as Valkyrie plans to launch more crypto-focused funds over the coming months and years.

BTF ETF chart. Source: FXEMPIRE

VanEck Bitcoin Strategy ETF (XBTF)

The VanEck Bitcoin Strategy ETF gained the SEC’s approval in October but was launched on the CBOE exchange today. It is the third Bitcoin futures ETF available in the United States and is expected to gain adoption due to VanEck’s reputation as one of the leading investment firms in the country. XBTF debuted today on the NASDAQ stock exchange and is trading around the $60 per share mark. It could surge higher over the coming weeks and months as the demand increases.

Purpose Bitcoin ETF (BTCC)

While the US is yet to approve a single spot Bitcoin ETF, its North American neighbor Canada has already approved a few. The Purpose Bitcoin ETF (BTCC) is one of the largest spot Bitcoin ETFs in the world, with more than $1 billion in assets under management. BTCC’s price could rally higher over the coming years as more investors seek ETFs that have direct exposure to Bitcoin, especially as the United States continues to reject the launch of similar funds.

Amplify Transformational Data Sharing ETF (BLOK)

Amplify Transformational Data Sharing ETF (BLOK) is a fund that invests roughly 80% of its total assets in stocks engaged in the development of blockchain technologies. BLOK doesn’t track an index but rather focuses on various value and growth stocks within the cryptocurrency space. Some of BLOK’s top holdings include MicroStrategy, PayPal, Coinbase and Square. This fund has an expense ratio of 0.71%, a one-year return of 195%, and currently has more than $1 billion in assets under management. BLOK’s value could increase from its current $59 per share as the underlying stocks continue to perform due to the cryptocurrency market growing bigger over the coming months and years.

VanEck’s Bitcoin Futures ETF to Start Trading Tomorrow Following Spot ETF Rejection

The VanEck Bitcoin Strategy exchange-traded fund is set to go live tomorrow, a few days after the SEC rejected the firm’s spot Bitcoin ETF proposal.

XBTF to Start Trading Tomorrow

An official notice by the Chicago Board Options Exchange (CBOE) revealed that the VanEck Bitcoin futures ETF would start trading tomorrow, November 16. The CBOE said it is pleased that an ETF will be listed on its platform and will begin trading as a new issue on November 16, 2021.

The VanEck Bitcoin strategy ETF will trade on the CBOE under the ticker symbol XBTF starting tomorrow. The VanEck Bitcoin futures ETF joins the other two already approved by the United States Securities and Exchange Commission (SEC)

The US SEC approved the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF last month, and they are already trading on US stock exchanges. The SEC also approved the VanEck Bitcoin strategy ETF last month, but the investment firm delayed its launch.

This latest development comes a few days after the SEC rejected VanEck’s spot Bitcoin ETF application. The United States regulatory agency has always maintained that it is concerned about possible manipulation in the Bitcoin market, and that would affect investors.

The United States has rejected numerous spot Bitcoin ETF proposals in recent years and could reject the others currently on its table. The rejection comes despite Bitcoin’s market cap now over $1 trillion and Canada and Brazil both having Bitcoin ETFs.

BTC/USD chart. Source: FXEMPIRE

BTC Still Struggling Below $65K

The leading cryptocurrency reached a new all-time high above the $69k last week. However, BTC has been struggling around the $65k region over the past few days. At press time, BTC is trading at $64,189 per coin, down by 0.07% over the past 24 hours.

Despite its recent performance, the short and medium-term outlook for BTC remains positive. Several analysts and market participants expect BTC to reach at least $100k before the end of the year.

US SEC Rejects the VanEck Spot Bitcoin Exchange-Traded Fund

The United States Securities and Exchange Commission has announced that it had rejected the VanEck Bitcoin ETF proposal.

US SEC Rejects Another Spot Bitcoin ETF Proposal

The United States Securities and Exchange Commission (SEC) announced earlier today that it had rejected a bitcoin exchange-traded fund run by VanEck. The ETF sought to track the spot movement of Bitcoin’s price.

This latest development doesn’t come as a surprise as the SEC has made it clear on numerous occasions that it fancies approving a spot Bitcoin ETF at the moment. The regulatory agency has always maintained that it is concerned about possible manipulation in the Bitcoin market, and that would affect investors.

The VanEck Bitcoin ETF proposal was filed by the Cboe BZX Exchange in March. CBOE wanted to list the VanEck Bitcoin ETF and sought to become the first fund that was tracking Bitcoin’s spot price in the United States.

While the US continues to reject Bitcoin ETF proposals, Canada is already leading the way in the market as it has approved a few Bitcoin and Ether ETFs. American institutional investors like Ark Invest are gaining exposure to spot Bitcoin ETFs in Canada.

The rejection comes barely a month after the SEC approved the first futures-based bitcoin ETFs: the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF. The SEC said it prefers to approve ETFs that track Bitcoin futures instead of Bitcoin’s spot price.

BITO and BTF Dip After SEC’s Rejection

The ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) have been trading in the red zone since the SEC rejected the VanEck Bitcoin ETF proposal. BITO and BTF are currently the two existing Bitcoin-related ETFs in the United States.

BITO ETF chart. Source: FXEMPIRE

At press time, BTF is down by 1.34% and is trading at $25.32 per share, while BITO is trading at $45.15, down by 1.23% over the past few hours. The ETFs could drop lower by next week as the market adjusts to the SEC rejection news.

Regulators Rebuff VanEck’s Spot Market-Based Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has given the thumbs down to a VanEck bitcoin spot market ETF. The fund would have tracked the leading cryptocurrency directly rather than via the futures market. The securities watchdog had until Nov. 14 to make a call.

Even though it was a longshot, bitcoin investors were holding out hope that the SEC would see reason. VanEck’s application has been sitting on the SEC’s desk since the end of last year. It was filed by the CBOE BZX Exchange. Jan van Eck, CEO of the global investment manager, expressed his disappointment on Twitter.

 

Holding Out Hope

The crypto community had reason to hope. The SEC did not stand in the way of the ProShares Bitcoin Strategy ETF (BITO) from making its debut last month. The ProShares version gives investors exposure to the futures market rather than direct exposure to bitcoin. So it seemed fitting that perhaps SEC chairman Gary Gensler and crew might be persuaded to allow investors to gain direct exposure to BTC via an ETF.

Regulators have also tipped their hand to the fact that as long as they would lose sleep over the risk of market manipulation, they would not allow a bitcoin spot-market ETF. The regulatory pendulum has swung in that direction, and investors will have to live to fight another day.

Crypto index funds company Bitwise revealed in recent days that the firm has withdrawn its application with regulators for a bitcoin futures ETF. The firm still has a spot-market bitcoin ETF filing pending.

 

In addition, Grayscale Investments is looking to convert its bitcoin trust into a spot-market ETF. According to reports, the firm is hopeful that regulators will approve its filing by next summer.

Buying the Dip

The bitcoin price is falling in response, having tumbled 4% at last check to approximately $62,700. Bitcoin was knocking on the door of $70,000 just a couple of days ago, and the latest declines are a reminder of just how volatile the crypto market can be.

The bitcoin price might be down but it is not out. Investors are already discussing the opportunity to buy the dip. If the bullish bitcoin price forecasts come true, bitcoin won’t be trading at these levels for long.

 

Bitcoin Bulls Dig in Heels as Google Investment Arm Backs Digital Currency Group

Leading digital asset investment firm Grayscale Investments is a gauge of institutional demand for cryptocurrencies, especially bitcoin. The Grayscale Bitcoin Trust boasts $39.7 billion in assets under management (AUM). Now the parent firm has received a ringing endorsement from some high-profile names in Silicon Valley.

In a rare funding round, Digital Currency Group, Grayscale’s parent company, has attracted some major investors, including a division of tech giant Google, that are betting on the further adoption of bitcoin and other major cryptocurrencies. SoftBank led a $700 million secondary round into DCG with participation from CapitalG, which is the growth fund of  Google parent company Alphabet, as well as Ribbit Capital and others. For its part, Google’s Capital G has $3 billion in AUM.

The massive round values DCG at $10 billion and represents one of the few times that Grayscale’s parent company has raised outside capital. Prior to this round, DCG had raised a total of $25 million in funding.

The firm doesn’t appear to have its sights set on going public, according to DCG CEO Barry Silbert cited by CNBC.  DCG is on track to generate more than $1 billion in revenue in 2021.

Bitcoin Bet

The participation of Google’s CapitalG, among other backers, comes in the midst of bitcoin’s bull cycle in which the flagship cryptocurrency has recently attained a fresh all-time high. Market leaders are convinced that bitcoin has more runway for gains before the year is over.

Bitcoin’s dominance currently hovers at 44% while Ethereum’s is just over 19%. While meme coins in particular have been trading more independently from bitcoin of late, institutions are generally drawn to bitcoin first given its track record and acceptable regulatory status, as evidenced by the recent approval of a BTC futures ETF.

Grayscale Pursues Bitcoin ETF

Now that regulators have allowed a bitcoin futures ETF to trade, Grayscale has its sights set on converting its bitcoin trust to a spot-market ETF. According to Grayscale’s global head of ETFs, David LaValle, cited by Bloomberg, the firm is confident that the SEC will green-light its bitcoin ETF application by July 2022.

Since the ProShares Bitcoin Strategy ETF (BITO) launched in October, the bitcoin price set a fresh all-time high of close to $67,000. It has since pulled back from that level but remains above the psychologically sensitive $60,000 threshold.

The bitcoin Fear & Greed Index is flashing “greed” with a reading of 74 as investors expect wide-scale adoption to boost prices further.

Leveraged Bitcoin ETFs? SEC To Deny Valkyrie’s Proposal

The United States SEC has approved two Bitcoin futures ETFs in recent weeks, but it is not open to approving leverage Bitcoin ETFs.

US SEC To Dismiss Valkyrie’s Leverage Bitcoin ETF Proposal

The United States Securities and Exchange Commission (SEC) is reportedly not in favor of approving leveraged bitcoin exchange-traded funds (ETF). This latest development comes after the regulatory agency approved two Bitcoin futures ETFs a week ago.

According to the Wall Street Journal, the regulator had asked at least one asset manager not to proceed with plans for a leveraged bitcoin exchange-traded fund. The media outlet cited sources close to the matter.

Per the report, the SEC said it would only approve BTC-related products that provide exposure to futures contracts. The SEC is only interested in approving Bitcoin  ETFs similar to the ones it approved last week.

Investment firm Valkyrie has submitted a proposal to the US SEC seeking to launch a leveraged Bitcoin ETF. Valkyrie wants to offer a 1.25x leveraged bitcoin futures ETF. However, the SEC doesn’t want an ETF that is comprised of borrowed funds.

The regulatory agency approved two Bitcoin futures ETFs last week. The ProShares and Valkyrie Bitcoin futures ETFs started trading on the NYSE Arca and NASDAQ exchanges, respectively, last week. However, the broader crypto market is still expecting the regulator to approve an ETF that tracks Bitcoin’s spot price.

The SEC has been hesitant to approve a Bitcoin spot ETF due to concerns of price manipulation within the crypto space.

Bitcoin Climbs Above The $60k Level Again

Bitcoin reached a new all-time high above $67k last week. However, the leading cryptocurrency has lost some of its value since then. It dropped below the $60k level yesterday as the broader cryptocurrency market encountered a correction.

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BTC/USD chart. Source: FXEMPIRE

However, BTC has started to recover some of its value. BTC is currently up by 3.4% and is trading above the $61k mark at the time of writing this report.

Investment Firm ProShares Launches Three New ETFs

ProShares, one of the leading investment firms in the United States, has launched three new exchange-traded funds (ETFs) in an attempt to expand its product base.

ProShares Introduces Three New ETFs

ProShares, a premier provider of ETFs, announced earlier today that it had launched three new ETFs. The exchange-traded funds, dubbed ProShares On-Demand ETF (OND), ProShares Smart Materials ETF (TINT), and ProShares Nanotechnology ETF (TINY), add to the company’s rising number of investment products.

So far this year, ProShares has launched six thematic ETFs, taking its total to 12 at the moment. In a press release earlier today, ProShares CEO Michael L. Sapir said the latest ProShares Thematic ETFs provide their investors with new and effective ways to gain exposure to companies that are changing the world through innovation.

The launch of these ETFs comes a month after the investment firm launched three other ETFs, ProShares S&P Kensho Cleantech ETF (CTEX), ProShares S&P Kensho Smart Factories ETF (MAKX) and ProShares Big Data Refiners ETF (DAT).

ProShares’ Bitcoin Futures ETF Is Currently Underperforming

ProShares became the first investment firm to launch a Bitcoin futures ETF last week. The Bitcoin ETF (BITO) recorded more than $1 billion in transaction volume in its opening two days, indicating a huge demand for the cryptocurrency-focused exchange-traded fund.

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BITO chart. Source: FXEMPIRE

Due to the huge demand for the ProShares Bitcoin ETF (BITO), the trading limit available for the futures on the CME exchange will be breached before the end of the month. As a result, investors would not have access to the futures until next month.

Despite its excellent debut, the shares of the BITO ETF are currently down by 5.52% since the market opened a few hours ago. BITO is currently trading at $37.85 per share. The decline in the ETF’s value could be tied to Bitcoin’s underperformance in the market over the past 24 hours. BTC‘s price has dropped below the $60k level for the first time in days. The dip below $60k comes just a week after Bitcoin reached a new all-time high price above $67,000.

Gold Retraces Modestly as Dollar Strength Dampens any Daily Gains

As of 4:45 PM EDT gold futures basis most active December 2021 contract is down two dollars, or -0.11% and is fixed at $1782.10. Concurrently spot or Forex gold is currently jumping between fractional losses and fractional gains. Currently spot gold is fixed at $1,782.55 approximately +0.05% or one dollar on the day.

gold oct 21

Considering that the dollar is currently up just over ¼% it is clear that any decline today can be directly attributed to a stronger dollar. Currently the dollar index is up 25 points, or +0.27%, and fixed at 93.785.

Looking at a daily candlestick chart we can see that gold is currently above its opening price. Gold opened trading at $1782.50 and traded to a high of $1790.40 and a low of $1776.80. That means when compared to yesterday’s trading range gold has had a higher high and a higher low, although it closed just below Wednesday’s closing price.

Gold did not have much competition from either U.S. stocks or cryptocurrencies. In the case of the cryptocurrencies, after hitting an all-time high yesterday Bitcoin futures declined by almost 6% ($3,980) and are fixed at $62,685.

After launching the first Bitcoin futures ETF yesterday, ProShares Bitcoin strategy (BITO) declined by 5.61% with the ETF currently priced at $40.64 per share.

U.S. equities were mixed with both the NASDAQ Composite and Standard & Poor’s yielding moderate gains today. The NASDAQ gained +0.62%, and after factoring in today’s gain of 94.0217 is currently fixed at 15,215.70. The Standard & Poor’s 500 gained 13.59 points, or +0.30%, and is currently fixed at 4549.78. The Dow Jones Industrial Average closed, in essence, unchanged with a decline of -0.02%, or a loss of 6.26 points, and is fixed at 35,603.08.

According to Reuters News, today’s fractional decline in gold prices was a result of choppy trading as the precious metal continues to be pressured by rising yields on U.S. bonds. However, gold prices were supported by reports about China that indicated that they are also experiencing upticks and inflation and an extremely troubled real estate(housing) market.

Reuters also spoke to Phillip Streible, Chief Market Strategist at Blue Line Futures in Chicago who said, “The Fed is going to taper and yields are going to make an all-time high so there is no reason for people to park their money in a nonyielding safety asset like gold.”

They also spoke about the double-edged sword that is inflation, Federal Reserve actions as inflation rises (a bullish component for gold prices) reduce stimulus coupled with higher interest rates which will reflect higher yields on U.S. government debt instruments will raise the opportunity cost of holding nonyielding bullion (a bearish component for gold prices).

It seems for the moment until the Federal Reserve convenes for its next FOMC meeting on November 2, gold will continue to trade in a range-bound manner reflecting the dynamic crosscurrents. Dollar strength and higher yields in U.S. debt will continue to pressure gold lower, and inflationary concerns will continue to be supportive of gold prices.

For those who would like more information, simply use this link.

Wishing you, as always, good trading and good health,

Gary Wagner

 

Bitcoin Hits A New All-Time High Above $67k, Eyes The $70k Level Next

The world’s leading cryptocurrency has reached a new all-time high for the first time in months and could be gearing up to surge higher over the coming days.

Bitcoin Finally Sets A New All-Time High Above $67k

Bitcoin has had an extraordinary performance since the start of the month. The leading cryptocurrency has seen its price rise by more than 30% over the past three weeks. Yesterday, the leading cryptocurrency reached another milestone after setting a new all-time high above $67k.

According to the data obtained from Coingecko, Bitcoin reached a new all-time high at $67,276.79. This new achievement came as BTC’s price rose by more than 7% yesterday. It is the first time Bitcoin is reaching a new all-time high level since April 2021.

Following the rally, Bitcoin’s market cap surged to nearly $1.4 trillion. Bitcoin’s price has slightly retreated, and it is now trading around $66k per coin. With a market cap of $1.2 trillion, Bitcoin has a market dominance level of 44.5%.

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BTC/USD chart. Source: FXEMPIRE

BTC wasn’t the only coin that has been rallying since yesterday. Ether crossed the $4,300 level and is heading towards a new all-time high if it can maintain its current momentum. Thanks to the performance of other cryptocurrencies, the total cryptocurrency market cap is now approaching $2.8 trillion

Bitcoin Eyes The $70k Level

Following its latest rally, BTC could be looking to surge higher in the coming hours and days. If Bitcoin can build on its current momentum, then it could touch the $70k level over the next few days.

The ProShares Bitcoin futures ETF coming to the market helped boost Bitcoin’s performance. The VanEck Bitcoin futures ETF is coming in the next few days, and that could provide a further boost for Bitcoin in the short term.

Many market experts and analysts expect Bitcoin’s price to reach the $100k level before the end of the year. BTC’s price would need to rise by more than 40% from its current price to attain that level.

MicroStrategy Shares Rise as Bitcoin Bet Pays Off

Enterprise software company MicroStrategy was a first-mover to adopt bitcoin on its balance sheet. The company made the move over a year ago, and it has paid off in spades as its bitcoin investment has ballooned in size.

Now that the bitcoin price has attained a fresh all-time high of more than $65,000, MicroStrategy’s stock is rallying too. Shares of MicroStrategy increased 4.2% on Wednesday to $758. So far this year, the stock has nearly doubled. And over the past 12-month period, the stock has climbed more than 300%. In the same period, the bitcoin price has soared over 400%.

MicroStrategy’s stock reclaimed some lost ground after falling on Tuesday, the day that the ProShares bitcoin futures ETF started trading. MicroStrategy is considered another way for investors to play the cryptocurrency market, especially if they don’t want to take the plunge into bitcoin just yet.

Bitcoin Portfolio

MicroStrategy owns more than 114,000 bitcoins on its balance sheet. The value of the investment has about doubled in size from approximately $3 billion to over $6 billion. And according to MicroStrategy CEO Michael Saylor, the company is holding tight.

MicroStrategy is not the only company with bitcoin on its balance sheet. A year ago, Jack Dorsey’s payments company Square followed suit. After pouring more than $200 million into bitcoin in total, Square’s holdings are valued at $530 million, reports indicate.

Now Square is exploring the launch of a bitcoin mining operation, which is the process by which new coins are created and the network is secured. A recent tweet by Dorsey of the number “705742” has the cryptocurrency community convinced that it is bitcoin related, though the Square and Twitter CEO is keeping his cards close to the vest.

More Potential Gains Ahead

Both MicroStrategy and Square could potentially ride the crypto wave higher next week when a second bitcoin futures ETF is expected to make its debut. The VanEck Bitcoin Strategy ETF, which will trade under the ticker symbol XBTF, has received the regulatory clearance to begin trading in the coming days.

 

The investment management firm is also waiting on pins and needles for the U.S. SEC’s verdict on a VanEck “physical bitcoin” ETF, a decision that according to director Gabor Gurbacs is expected in November.

Crypto Hits the Mainstream as Bitcoin ETF Beats Expectations

The bitcoin futures ETF (“BITO“) made a huge splash on its maiden day of trading, reaching key milestones and smashing records. Not only did the enthusiasm catapult the bitcoin price closer to a fresh all-time high, but the fund itself made its presence known among its ETF peers. It proved that there is pent-up demand for an ETF product, especially as the bitcoin price crosses $64,000.

Out of the Gate

The ProShares Bitcoin Strategy ETF (BITO) finished day one of trading with $570 million in assets. Of that, BITO saw $550 million in inflows, which when combined with the $20 million that ProShares raised in a former seed round brings the the firm’s total assets on day one to $570 million, as pointed out by Morningstar Research’s Ben Johnson.

Travis Kling, who runs Ikigai Asset Management, said the performance “massively exceeded” his expectations.

BITO’s trading volume came to extremely close to $1 billion on the first day of trading. Bloomberg’s senior ETF analyst, Eric Balchunas said that BITO “defied…expectations,” noting that it was “easily the biggest day one of any ETF in terms of natural volume.”

By widening the pool beyond “natural” or “grassroots interest,” BITO’s day one volume “still ranks No. 2 overall,” Balchunas pointed out. Based on these parameters, it was second only to the BlackRock US Carbon Transition Readiness ETF.

Inflationary Hedge

Billionaire hedge fund trader Paul Tudor Jones, who is CIO at Tudor Investment Corp, has already looked to bitcoin as a hedge for his portfolio last year. Even with the bitcoin price near record highs, he still believes that crypto is a better hedge than gold, telling CNBC, “Clearly there is a place for crypto and clearly it’s winning the race against gold at the moment.”

Tudor Jones revealed that his portfolio has crypto “in the single digits,” adding that the firm’s fund has a “small trading position.”

Meanwhile, the broader cryptocurrency market’s total market cap currently hovers at $2.5 trillion. Bitcoin’s market cap alone is $1.2 trillion, with a dominance rate of 47.4%, according to CoinMarketCap.

On Tuesday, more than 24 million shares of BITO were traded. The market will be looking to see if that momentum will be sustained. With the bulls clearly in control, BITO has the wind at its back for now.