The first U.S.-based Bitcoin futures exchange-traded fund, the ProShares Bitcoin Strategy ETF (BITO), launched last week. The ETF saw $1 billion worth of trading volume last Tuesday, the second-most heavily traded new ETF on record. A lot of the money flowing into BITO this week came from individual investors. The market response proves investors desire cryptos.
The money flow into BITO, also flooded the crypto market. Bitcoin buyers led the leading crypto to a new all-time high of $66,974 last Wednesday. The buying pulled many other cryptos up as well.
Ethereum hit a 5-month high of more than $4,200 early Thursday. Smaller altcoins also spiked.
As more ETFs receive approval (e.g. Valkyrie Bitcoin Strategy ETF (BTF) launched on Friday), there is more to come. At least 12 more funds are waiting for SEC approval. It’s no longer a question of if Bitcoin will hit $100,000 but when.
The entire crypto market cap could reach $3 trillion soon. We are not far off. The buying frenzy this week pushed crypto’s market cap to $2.7 trillion. That’s triple what it was at the start of the year 2021.
Sven Franssen