Bitcoin Reaches $66000, After U.S. ETF launch

Key takeaways:

  • The world’s most valuable cryptocurrency was up 3.30 per cent at $66,364.72, having achieved a new high of $67,016.50, surpassing the previous high of $64,895.22 set on April 14 this year.
  • Legendary trader Paul Tudor Jones’ positive comments boosted sentiment, as the billionaire investor stated that he prefers crypto to gold as an inflation hedge.

On Wednesday, Bitcoin hit a new all-time high, boosted by the successful launch of the first bitcoin futures exchange-traded fund in the United States.

The world’s most valuable cryptocurrency was up 3.30 per cent at $66,364.72, having achieved a new high of $67,016.50, surpassing the previous high of $64,895.22 set on April 14 this year.

The ProShares Bitcoin Strategy ETF began trading on Tuesday, a step that market players believe will encourage investment into the digital asset.

From its opening price of $40.88 on Tuesday, the ETF finished up 2.59 per cent at $41.94, and it continued to rise on Wednesday, closing up 3.76 per cent at $43.52.

CEO of crypto robo-advisor Makara said, “The key here is whether we are able to establish support above $65,000”. “If we can, the classic Q4 crypto rallies we’ve seen in most years could take bitcoin towards some of the loftier price predictions we’ve seen over the past several months. If sell pressure takes over, though, our next leg up could take a while to materialize.”

Bullish comments from a legendary trader boosted sentiment Wednesday. Billionaire investor Paul Tudor Jones called crypto his preferred inflation hedge over gold.

“Bitcoin would be a great hedge. Crypto would be a great hedge,” Jones told CNBC’s “Squawk Box.” “There’s a plan in place for crypto and clearly it’s winning the race against gold at the moment … I would think that would also be a very good inflation hedge. It would be my preferred one over gold at the moment.”

Even though the ETF is based on bitcoin futures, James Quinn, managing partner of Q9 Capital, a Hong Kong-based cryptocurrency private wealth manager, believes that the ETF’s trades and hedges will result in activity flowing into the spot market and the bitcoin price.

Crypto ETFs have been created in Canada and Europe this year, owing to a surge in interest in digital assets. VanEck is one of the fund managers seeking US-listed ETFs. However, Invesco abandoned its ambitions for a futures-based ETF on Monday.

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Aadrika Sharma
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