Bitcoin crossed the $60,000 mark on Wednesday, approaching its all-time high rise since a new type of investment indexed to the cryptocurrency was approved.
Bitcoin latest price
At 1325 GMT, bitcoin traded at approximately $60,301, closing in on its all-time high of $68,991— that was struck in November 2021 — which analysts believe is within reach now.
Since US securities regulators’ approval on on January 10, exchange-traded funds (ETFs) indexed to bitcoin have theoretically allowed a wider pool to invest in the cryptocurrency without having holding it directly. The funds themselves, however, do invest in the digital Currency.
The US launch of ETFs or ETPs (exchange-traded products) has “injected a fresh wave of optimism, propelling trading volumes and spotlighting crypto-linked firms”, suggested Mikkel Morch of specialist fund ARK36.
The expected approval of the new investment product contributed to price hike in recent months, which had largely fallen by the end of 2022 following the bankruptcy of several crypto giants.
The instruments are comparable to stocks or mutual funds as far as accessibility to everyday investors is concerned.
Some investors, who tried to recoup their bets, triggered a wave of mass withdrawals from the GBTC (Grayscale Bitcoin Trust) fund, once it had been converted into an ETF.
Following the selling saga subsiding, flows into US bitcoin ETFs increased, such as that of asset management giant BlackRock.
According to calculations by asset manager CoinShares published, on Monday, exchange-listed cryptoasset-linked investment products have garnered around $5.7 billion since the start of the year.
