Bitcoin is pushing towards record as a futures ETF nearing debut

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    (Bloomberg) – Bitcoin continued to climb to all-time highs, with asset manager ProShares about to launch the first ever publicly traded Bitcoin futures fund.

    The largest cryptocurrency gained as much as 5.5% and was trading at around $ 61,799 at 1:00 p.m. in New York. It fell to nearly $ 59,000 on both Saturday and Sunday. Bloomberg News reported Thursday that the SEC is unlikely to block the products from starting trading this week, according to people familiar with the matter.

    «We plan to launch the first Bitcoin-Linked ETF on the NYSE on Tuesday,» said Michael Sapir, CEO of ProShares, in an interview with Bloomberg.

    Bitcoin has more than doubled since the beginning of the year, although the ride has been volatile as the market faces tales of increased institutional acceptance and asset class maturity, to a crypto crackdown in China and energy use concerns. Other cryptos also gained ground on Monday, with the second largest ether gaining up to 5.3%. According to CoinGecko.com, Binance Coin has regained third place in crypto market value after a 17% rally in the past seven days.

    The technical build-up of Bitcoin in its latest rally worries Rick Bensignor, president of Bensignor Investment Strategies and a former strategist at Morgan Stanley. Depending on Monday’s price move, it «could make me think twice about buying Bitcoin now, especially since it’s against all-time highs,» he said in a note on Monday.

    Crypto-exposed stocks also appreciated on Monday, including publicly traded company Coinbase Global Inc., which rose 1.3% and mining company Riot Blockchain Inc., which rose 1.8%. Riot’s UK peer Argo Blockchain Plc rose as much as 9.2% in London after hiring from Barclays Plc and Jefferies Financial Group Inc.

    Bitcoin’s 43% increase so far in October has pushed crypto into overbought territory, according to relative strength index data. It hit a record high of $ 64,869 in mid-April. Many have attributed the latest leg of the rally to optimism about the Bitcoin futures ETF.

    However, there is no evidence that the market wants such a product, and even if there is demand for it, it may not be as good a product as a spot Bitcoin ETF, said Noelle Acheson, Head of Market Insights at Genesis Bloomberg’s “QuickTake Stock” streaming program. Genesis is affiliated with Grayscale Investments, which reiterated Monday that it will seek to convert its Bitcoin trust into an ETF.

    «It’s a very important event psychologically and symbolically – I mean, it signals regulatory acceptance that Bitcoin is an investable asset,» she said. “It’s another big step in the convergence between traditional and crypto markets. But I think that there might not be as much monetary demand for this product as the market seems to be signaling. «

    –With the support of Katie Greifeld and Joanna Ossinger.

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