Here’s why Bitcoin’s value has skyrocketed once again
The cryptocurrency was trading at $66,975 following the launch of an ETF in the US
Banking blockbuster
Eric Balchunas, a senior analyst at Bloomberg, is not surprised by the price appreciation anddescribed the ETF launchas “a blockbuster, smash, home run debut [which] brings a lot of legitimacy and eyeballs into the crypto space”.
But what impact will BITO have on the cryptocurrency space? As a new product it has already exposed more investors to the ups and downs of bitcoin’s value in a regulated market. Many of these are likely to have previously felt uncomfortable buying cryptocurrencies from unregulated exchanges and having to store the asset themselves.
Other investment funds with an interest in cryptocurrencies will be no doubt be encouraged by BITO’s success, andkeen to list ETFsof their own which are exposed to bitcoin and its rivals. Several other ETF providers are likely to launch their bitcoin ETFs in the days following ProShares’ debut, including Invesco, VanEck, Valkyrie, and Galaxy Digital.
It is a development which is bound to make investing in cryptocurrencies easier and more common – and an important stepping stone for their adoption into mainstream finance.
Article byAndrew Urquhart, Professor of Finance & Financial Technology, ICMA Centre, Henley Business School,University of Reading
This article is republished fromThe Conversationunder a Creative Commons license. Read theoriginal article.
Story byThe Conversation
An independent news and commentary website produced by academics and journalists.An independent news and commentary website produced by academics and journalists.
Get the TNW newsletter
Get the most important tech news in your inbox each week.
