Bitcoin, the world’s largest cryptocurrency by market capitalization has surpassed a record high it set on April 14, 2021, when the cryptocurrency closed that trading day at $64,889. Since then, the digital asset plunged to as low as $30,000 in May, in the months that followed, it embarked on an upward movement until yesterday, Wednesday, October 20, 2021, when it closed the trading session at a new all-time record of $65,919.14, according to data from CoinMarketCap. The data also shows that it rose as high as $66,597.54 today, Thursday. October 21, 2021, but it has currently retracted to $64,683.77.
Yesterday’s rally was fuelled by the New York Stock Exchange (NYSE) debut of the first bitcoin-linked Exchange Traded Fund (ETF) in the U.S., ProShares Bitcoin Strategy ETF, under the ticker symbol BITO.
Yesterday at midday, ProShares Bitcoin Strategy ETF stock was trading around $43.63 per share, representing a 4% rise from Tuesday’s close. Currently, ProShares Bitcoin Strategy ETF, which primarily invests in bitcoin futures contracts instead of the cryptocurrency itself, is trading at $43.28.
In just two days, PreShares Bitcoin Strategy ETF’s value of the assets it holds surpassed $1 billion, making it the fasted ETF to reach the $1 billion mark, according to Bloomberg Intelligence data. The latest statement released by the ETF says that its Assets Under Management (AUM) are worth $1.2 billion.
As bitcoin keeps soaring, more institutional investors have embraced the pricey digital asset in recent months, and analysts believe this is only going to keep happening because bitcoin and the broad crypto market is bullish at the moment and predictions for the future look brighter.
In a note to clients on Tuesday, Matt Blom, the head of global sales and trading to Eqonex Group said that the next 10 days will see further fresh capital hit the cryptocurrency market. Blom added that traders should delay any “material attempt to exit short term profitable positions” even though the Securities and Exchange Commission (SEC) is yet to make a decision on other crypto-focused ETFs that want to join the stock market. Eqonex Group is an online crypto exchange that exposes individuals and institutional investors to crypto and digital assets.
Another analyst that believes that more institutional investors are going to flood into bitcoin is Pankaj Balani, the CEO of crypto derivatives exchange, Delta Exchange. In a note to clients early this week, Balani said that there are numerous ETFs that are waiting for SEC approval and when they get cleared to debut on the stock exchange in the coming months, “we should see more and more institutional flow coming to Bitcoin.” Delta Exchange also supports trading of Bitcoin futures and futures on over 50 top DeFi coins and altcoins
With the debut of ProShares and more ETFs expected to follow suit in the coming months, Gavin Smith, CEO of Panxora Crypto, a cryptocurrency hedge fund, said this provides retail traders with an easy route to take advantage of the crypto marketplace.
Bitcoin is surging and Wall Street analysts believe it may surge even higher with all this institutional inflow.