Bitcoin's value soars again as US launches ETF | US News | NewsRme


Bitcoin's value soars again as US launches ETF | US News | NewsRme
Bitcoin has achieved another important milestone and a new price record.
Earlier this week, an exchange traded fund (ETF) was launched in the US, exposing Bitcoin to a far larger investment base.
With the new fund, investors may bet on Bitcoin's future worth without really holding it. It was the first time investors could trade a Bitcoin-related asset on the New York Stock Exchange, and it generated a lot of media and market interest.
Starting at $40 a share and ending the day up 5 percent, it became the second most widely traded new ETF ever (the first was created by BlackRock, the world's largest asset management business).
And it's had a huge influence on Bitcoin's price. It climbed from $64,895 to a new high of $66,975 and was trading around $65,000 at the time of writing. With such high volatility, Bitcoin reached a low of $30,000 in mid-July 2021.
Many financial organizations have sought and failed to acquire Bitcoin ETF clearance. SEC has been hesitant to authorize any. This was partially due to Bitcoin's extreme volatility and wider worries about the uncontrolled cryptocurrency sector.
But SEC Chairman Gary Gensler said futures-based ETFs are more comfortable since they trade on a controlled market. This is a major shift for the SEC since Gensler took over in April 2021.
Trades in ETFs are similar to those in regular stocks, and they may be made by anybody with a brokerage account. With the launch of the ProShares Bitcoin Strategy ETF, the first time that mainstream investors will have access to the high and lows of Bitcoin's value will be eliminated.
This ETF exposes the market to a larger range of investors, including pension funds, adding to the rising acceptability of Bitcoin in the financial markets.
Some still doubt Bitcoin because of its relation to criminal activities, yet a new research says this is fading. And JP Morgan CEO Jamie Dimon says Bitcoin is worthless and will be heavily regulated. The bank's wealth management customers may access bitcoin money starting July 2021.

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