Investors welcomed the successful launch of the first US bitcoin futures exchange-traded fund on Wednesday.
By 4 p.m. ET, Bitcoin had risen 3.9 percent to $66,398.25. A day earlier, the coin had reached $64,899, breaking the previous intraday record set in mid-April.
In order to establish support above $65,000, Jesse Proudman, CEO of crypto robo-advisor Makara, said. “If we succeed, the typical Q4 crypto rally might send to some of the loftier price expectations seen in recent months. If sell pressure prevails, our next move up may be delayed.”
Comments from a great trader helped Wednesday. Billionaire Paul Tudor Jones prefers crypto to gold as an inflation hedge.
“Bitcoin is a good hedge. CNBC’s “Squawk Box”: Crypto would be a wonderful hedge. “Crypto has a strategy and is definitely outpacing gold at the present… That would also be a decent inflation hedge. I like it over gold right now.”
Ethereum surged 7.4% to re-cross the $4,000 mark. With an intraday high of 4,380 in May, the world’s second-largest cryptocurrency traded at $4,104.61.
The ProShares Bitcoin Strategy ETF, which follows futures contracts, gained roughly 5% on its first day of trading.
Bitcoin Investors Desire
Not everyone was impressed. Many bitcoin investors desire a spot-only ETF rather than a futures-only
Beginner investors must understand concepts like “contango,” where a commodity’s futures price is greater than its spot price, and “backwardation,” the opposite.
I don’t see the sense of investing in futures-based bitcoin ETFs when you can acquire the asset on the spot market,” said CoinDesk Indexes’ managing director, Jodie Gunzberg.
“It’s not like oil or cattle, which most investors can handle physically. It’s more like gold in hand. It costs more than oil,” she remarked.
Still, it’s a big deal for the embryonic crypto industry, which has long pushed for Wall Street to embrace bitcoin and other digital currencies.